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2022 (5) TMI 942 - AT - Income TaxDisallowance u/s 40(a)(i) - tds liability on reimbursement of expenses to appellant’s associated enterprises - HELD THAT:- The Tribunal in assessee’s own case for assessment year 2011-2012 [2022 (5) TMI 846 - ITAT BANGALORE] on identical facts had held that license fees has been paid for the use of software. It was further held by the Tribunal that the assessee’s holding company procures software from third party and shared the cost with the assessee along with other group companies on a proportionate basis without any mark up. Therefore, it was concluded by the ITAT that the reimbursement of such expenses by the assessee cannot be held liable for TDS. Thus we hold that the assessee is not liable for TDS in respect of payment to M/s.Brand Union Worldwide Limited, London. Therefore, the expenditure cannot be disallowed by invoking the provisions of section 40(a)(ia) - assessee appeal allowed. Write back of excess provision towards additional salary - HELD THAT:- In view of the remand report, it is clear that for the current assessment the assessee had added back the provision on salary and offered the same as income. In the meanwhile the A.O. for assessment year 2008-2009 had disallowed the said expenses as provision and added back the same to income, which tantamount to double taxation of provision of additional salary. Since the A.O. in the remand report has clearly stated that the assessee’s claim is correct, we direct the A.O. to delete a sum of Rs.10 lakh from the taxable income for the relevant assessment year, since the same had suffered tax in previous assessment year, namely, A.Y. 2009-2010. It is ordered accordingly. Allowability of education cess paid as a tax deductible expenditure - HELD THAT:- As relying on decision of Kolkata bench of Tribunal in the case of Kanoria Chemicals & Industries Ltd [2021 (10) TMI 1153 - ITAT KOLKATA] we hold that payment of education cess including secondary and higher education cess is not allowable as deduction. Therefore, we reject ground 3 raised by the assessee.
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