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2016 (7) TMI 1622 - HC - Income TaxAddition on account of the commission paid on the bank guarantee issued by the VTB bank - bank guarantee commission to be treated as a payment of interest in terms u/s 2(28A) or addition 40(a)(i) - HELD THAT:- As pointed out by the CIT (A), there was no warrant for treating the bank guarantee commission as a payment of interest in terms of Section 2(28A) of the Act. The bank guarantee commission paid to the foreign bank could not have been disallowed under Section 40(a)(i) of the Act on the above basis. The Court is unable to find any legal infirmity in the above determination by the CIT(A) which has been affirmed by the ITAT. Method of accounting - Substantial question of law OR fact - HELD THAT:- Revenue does not dispute that the method of accounting has been consistently followed by the Assessee and has been accepted by the Revenue for the AYs previous to and subsequent to the AYs in question. Consequently, this Court does not see any reason to frame any question on this issue as well.
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