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2008 (2) TMI 411 - HC - Income TaxPayment related to advice on business strategy, marketing and sales planning, possibilities of joint venture and acquisition, etc., etc. –the assessee has already commenced its business and, therefore, the first part of section 35D of the Act would not be applicable the assessee has already commenced its business and, therefore, the first part of section 35D of the Act would not be applicable - the assessee does not have any industrial undertaking and, therefore, the second part of section 35D, would also not be applicable - the expenses incurred towards consultancy charges are for the purposes of carrying out the existing business more efficiently. - Regarding the applicability of section 43A of the Act with regard to additional liability incurred on account of fluctuations in the foreign exchange rate - held that the additional liability was for the purpose of the business of the assessee and not in relation to a capital expense. On this basis, the Tribunal allowed a deduction of the enhanced liability of the assessee. – Revenue appeal dismissed.
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