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2016 (2) TMI 496 - AT - Income TaxPayment of ASSF during the relevant financial period towards export of oil drilling equipments etc. - whetehr allowable expenditure u/s 37 - kick back - Held that:- In the present case, lower authorities have not brought out any allegation of illegal gratification or kick back payment or allegation of bogus payment by the assessee and as per proposition laid down by ITAT, Kolkata in the case of Rajrani Exports (2012 (6) TMI 62 - ITAT, Kolkata payment made to Iraqi Company for receiving services to facilitate export is allowable business expenditure and this fact is not relevant for making disallowance of such payment on the premise that such payment was passed on by Iraqi Company as kick back or illegal gratification to Iraqi authorities or any other entity or person. In the present case, there is no such allegation of the revenue, therefore, the present assessee before us has a better case and does nothit by explanation to section 37(i) if the Act. Finally, we are inclined to hold that the payment of ASSF made by the assessee during the relevant financial period towards export of oil drilling equipments etc. does not fall in the first category payments as per Volker Committee report and thus the same is allowable business expenditure and therefore, we direct the AO to allow the same. - Decided in favour of assessee Profit element for the purpose of computing the adjusted profit u/s 80HHC - Held that:- Conclusion of the CIT(A) in directing the AO to consider the only profit for the purpose of computing the adjusted profit u/s 80HHC of the Act is upheld - Decided in favour of assessee
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