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2018 (3) TMI 798 - HC - Income TaxNon-deduction of TDS on the payments made on reimbursement of service charges - Disalllowance u/s 40(a)(ia) - Held that:- In respect of similar or identical expenses this Court in CIT v. DLF Commercial Project Corporation [2015 (7) TMI 576 - DELHI HIGH COURT] wherein held it is undisputed that M/s DLF Land Ltd. had deducted TDS on the payments made by it under various heads on behalf of the assessee. Further, it is also not disputed that the assessee deducted TDS on the service charge paid by it to M/s DLF Land Ltd. on the reimbursement expenses. In such circumstances, this Court holds that the entire amount paid by the assessee to M/s DLF Land Ltd. is entitled to deduction as expenditure. Disallowance of amounts claimed to have been paid to sundry creditors - Held that:- AO was of the opinion that since the books were rejected, the debits claimed were not justified. Both CIT(A) and ITAT noticed that there was sufficient material. Besides, they were impressed by the fact that even though the AO rejected the report, he accepted the credit and chose to completely ignore the debits. On account of this deficiency, which was clearly cured, the Court is of the opinion that no substantial question of law arises. Net expenditure credits under Section 68 addition - Held that:- Since the AO did not make any further enquiry, the burden cast upon the Revenue clearly had not been discharged so far as to entitle it to bring the amount to tax under Section 68 of the 1961 Act. Consequently, the Court is of the opinion that the approach of the ITAT as well as CIT(A) was proper and their conclusions correct.
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