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2018 (10) TMI 1351 - AT - Income TaxAd hoc disallowance of advertisement expenditure - Held that:- Although the Ld. CIT (A) has made an ad hoc disallowance without pointing out any specific instance where the vouchers were not available and the Ld. Authorised Representative has also drawn our attention to the various documentary evidences filed in support of these expenses as available on pages 148,149,151,154, 155,169,171,174 and 176 of the paper book filed by the assessee, it would be in fitness of things that the issue be re-examined by the AO in this regard. Restore this issue to the file of the AO to be adjudicated afresh after duly considering the evidences which the assessee seeks to rely upon Disallowance of card acquisition expenses - Held that:- As decided in assessee's own case the assessee is entitled to treat the same as revenue expenditure in view of section 37(1) of the Act and the right to claim deferred revenue expenditure is given to the assessee and not to the revenue. DR also could not point out if there was any difference in the facts of the case in the impugned year and assessment year 2006-07. Accordingly, respectfully following the ratio of the judgment of the Hon’ble Delhi High Court in assessee’s own case for assessment year 2006-07. Taxing the allotment of shares by VISA Inc. by invoking Section 28(iv) - bringing notional share price to tax - Held that:- The case of the assessee finds support from the judgment of the Hon’ble Andhra Pradesh High Court in the case of CIT vs. K.N.B. Investments Pvt. Ltd.[2014 (10) TMI 253 - ANDHRA PRADESH HIGH COURT] wherein it has been held that the word used in Section 28(iv) of the Act are ‘arisen from business’ where ‘arisen’ signifies that benefit itself must have arisen. It was held that mere issuance of shares does not result in any benefit. We also note that the assessee has already paid short term capital gains at the rate of 30% on 86565 shares which were sold during the year under consideration. The taxability on the rest of the shares would arise only when such shares are sold. Accordingly, we hold that the lower authorities were not justified in bringing the notional share price to tax and further the CIT(A) had erred in confirming the addition as well as enhancing same to ₹ 26,37,01,571/-. Non granting TDS credit - Held that:- We restore this issue to the file of the AO for grant of TDS credit as per law after duly verifying the claim of the assessee and after giving due opportunity to the assessee to present its case.
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