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2018 (9) TMI 953 - AT - Income TaxExpenditure of rent paid to Rajasthan State Warehousing Corporation by invoking the provisions of section 40(a)(ia) - Allowing the said claim while passing the assessment under section 143(3) is a mistake apparent on record which was rectified by the AO while passing the impugned order under section 154 - Held that:- Since the rent was paid to the Rajasthan State Warehousing Corporation, therefore we find merit in the contention of the ld. A/R that said amount was certainly considered for computing the total income and filing the return of income by the RSWC. Therefore, if the said amount was already considered by the recipient while computing its total income and filed the return of income, then in view of the second proviso to section 40(a)(ia) which has been held as applicable retrospectively by the various decisions of Hon’ble High Courts including the decision of CIT vs. Naresh Kumar (2013 (9) TMI 275 - DELHI HIGH COURT) no disallowance is called for. Hence without going into the other contention raised by the ld. A/R, we find that if the said amount of rent has been considered by the RSWC in its total income while filing the return, then no disallowance shall be made under section 40(a)(ia) of the Act. Accordingly we direct the AO to verify this fact and then decide the issue in the light of the above observations and binding precedents.
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