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2017 (12) TMI 927 - AT - Income TaxDisallowance of claim u/s. 35D - assessee has claimed the expenditure incurred for increasing the authorized share capital u/s.35D - Held that:- The assessee has sought to make the claim u/s.35D which provides for allowance as preliminary expense fee paid for registering the company. In the present case, the company was registered on 20.03.2009. Hence, the fee paid for increase in capital in the current assessment year can by no stretch of imagination be said to be the fee paid for registering the company. Hence, the assessee’s claim in this case as preliminary expenditure is not at all sustainable. See Brooke Bond India Ltd vs. CIT [1997 (2) TMI 11 - SUPREME Court ] - Decided against assessee. Disallowance u/s. 40(a)(ia) - non deduction of tds on recruitment and training expenses - Held that- Commissioner of Income Tax (Appeals) has erred in not adjudicating the alternate contention of the assessee that when payee has offered the alleged amount as income in their return of income and paid the required tax thereon, the assessee should not be treated as “assessee” in default and no disallowance u/s.40(a)(ia) is required. Furthermore, the case laws referred in this regard also need to be taken into account. Moreover, this aspect needs reference to factual records. Hence, I remit this issue of the ld. Commissioner of Income Tax (Appeals) to consider this aspect and pass a speaking order after giving the assessee proper opportunity of being heard.
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