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2021 (10) TMI 78 - ITAT DELHIDisallowance of electricity and water expenses - CIT(A) following the decision of the Tribunal in the case of the assessee in earlier year sustained 50% of the disallowance and allowed relief for the balance amount - Whether expenses incurred wholly and exclusively for the purpose of profession? - HELD THAT:- CIT(A) has followed binding precedent in the case of the assessee itself and, therefore, we do not find any error in the order of the CIT(A) on the issue in dispute - we find that assessee has failed to justify that entire electricity expenses of the residence were related to the profession work. In the facts and circumstances of the case, we uphold the finding of the Learned CIT(A) on the issue in dispute. The ground No. (i) of the appeal of the assessee is accordingly dismissed. Disallowance out of foreign travelling expenses - lack of vouchers for these expenses - HELD THAT:- First, the assessee failed to submit legible copies of bills/vouchers for amount of expenses disallowed by the AO. Secondly, according to her, period of stay of 21 days in foreign country was not justified for the purpose of profession as the IBA Annual Conference and Exhibition was only from 30th September to 5th October, 2012 (only for 6 days). The Learned Counsel of the assessee could not justify before us also the period of 21 days in foreign country for the purpose of professional work. In our opinion, the finding of the Learned CIT(A) on the issue in dispute is well reasoned and we do not find any error in the same. Accordingly, we uphold the same and dismiss the ground no. (ii) of the appeal of the assessee. TDS u/s 195 - Disallowance u/s 40(a)(ia) - non-deduction of the tax at source on payment made to International Bar Association (IBA) - HELD THAT:- Neither the Assessing Officer, nor the Ld. CIT(A) has specified which kind of PE exist in the case of non-resident entity or how the business connection of non-resident is established. Even if, we assume that lower authorities have thought of fixed place PE, then the authorities are required to establish that place of Indian Bar Association was under 'control' and at the 'disposal' of International Tax Bar Association and 'core activity' of International Tax Bar Association has been carried out from said place. No such finding of fact has been recorded by the lower authorities - no evidence of any agency PE or service PE has been brought on record by the lower authorities. CIT(A) has also confirmed the disallowance in terms of Section 37(1) of the Act on the ground that expenses were not incurred wholly and exclusively for the purpose of the profession of the assessee. The assessee has also not submitted any credible evidence before us to demonstrate that those expenses were incurred wholly and exclusively for the purpose of profession - restore this issue back to the file of the Assessing Officer for deciding afresh.
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