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2018 (6) TMI 1569 - ITAT MUMBAIDisallowance u/s 43B - Held that:- As assessee claimed that the impugned amount was not debited to profit & loss account and further was not claimed as expenditure and thus cannot be added under section 43B of the Act. This fact was claimed to be expressly stated in the tax audit report at annexure-VII to clause 21(Business)(i) & (ii). This factual aspect was not controverted by the Revenue. There is uncontroverted finding in the impugned order that such expenses has not been claimed by the assessee, therefore, the addition was rightly deleted, consequently, we affirm the stand of the CIT (Appeal). Disallowance on account of rent payment - assessee explained that the office space was shared between the assessee and its group affiliates as per clause -14 of the agreement on assignment - Held that:- Since, the office was utilized for business purposes, which is even not disputed by the Assessing Officer, pursuant to an agreement and TDS was deducted under section 194-I as per leave and license agreement dated 29/06/2007 entered between M/s TAG Enterprises and M/s Brnad Marketing India Pvt. Ltd., the licensor permitted the licensee M/s Brand Marketing India Ltd., the right to assign the premises as per clause-14 of the agreement, which has been reproduced in the impugned order and uncontroverted fact that above two group companies along with the assessee shared the premises and the rent/amenities, therefore, it is an allowable expenditure. The stand of the Ld. Commissioner of Income Tax (Appeal) is affirmed.
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