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2022 (9) TMI 646 - AT - Income TaxDisallowance of payment made on account of Administrative Service charges - CIT-A deleted the addition - HELD THAT:- Under the head ‘Human Resource and Development’, the assessee has referred to various e-mails exchanged during the year between it and TACO concerning with the human resource development. Such detailed e-mails have been placed on record in second and third paper books. We have examined some of the e-mails on test-check basis and found the same to be pertaining to the assessee’s business. Similar is the position regarding e-mails received for rendition of Legal and taxation advisory services; Vendor management services; Internal audit; IT support services/IT Infrastructure; and Monitoring of operations etc. Such email exchanges amply demonstrate the receipt of services by the assessee. In that view of the matter, it is difficult to accept the AO’s point of view that the assessee did not receive any services. Once the factum of receipt of services is established, the next question is about the deductibility of payment of Administrative Service charges to TACO on legal basis. It is seen that the AO made similar disallowance in the case of the assessee for the A.Y. 2009-10. The matter finally travelled to the Tribunal [2019 (9) TMI 852 - ITAT PUNE]has upheld the action of the CIT(A) in deleting the disallowance. The ld. AR submitted that the AO himself did not dispute the deductibility of such expenses from the A.Ys. 2010-11 to 2015-16 and allowed the deduction for the same. Our attention was also drawn towards the orders passed by the Tribunal in other group companies wherein the payments made to TACO towards Administrative Service charges have been allowed by the Tribunal. - Decided against revenue.
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