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2019 (8) TMI 109 - HC - Income TaxDisallowance of expenses on consumption and replacement of stores and spares treating the same as revenue expenditure instead of capital expenditure - addition on account of loss on sale of fertilizer bonds treating it as business loss instead of capital loss - disallowance u/s 40(a)(ia) in respect of commission payment to dealers by invoking the provisions of Explanation (I) to section 194(H) of the Act - HELD THAT:- We take notice that the very same substantial questions of law, as proposed by the revenue in the present Tax Appeal fell for the consideration of this Court in [2019 (4) TMI 1723 - GUJARAT HIGH COURT]. This Court while answering the first question as regards the disallowance of the expenses on consumption and replacement of stores and spares treating the same as revenue expenditure instead of capital expenditure. So far as the second and third questions are concerned, they are with respect to the deletion of loss on sale of fertilizer bond it was held that same is allowable as business loss. So far as the fourth question as regards the disallowence under section 40(a)(ia) is concerned, while answering the same it was hold that there is no service provided by the dealer to the assessee in the course of buying or selling goods, inasmuch as, the assessee directly sells goods to the dealer and the dealer makes the payment after collecting it from the consumers and, therefore, it is a transaction on principal to principal basis and, therefore, the payment made by the dealer is not liable for any deduction of tax by the assessee company. In view of the aforesaid, none of the proposed questions of law are res-integra. In the result, this Tax Appeal fails and is hereby dismissed.
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