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2023 (2) TMI 910 - AT - Income TaxDisallowance made u/s. 40(a)(ia) - Exhibition Expense - Non deduction of TDS @0.01% - Assessee contented that for purpose of lower deduction of tax u/s. 197 receipient applied for deduction certificate and same was granted to him by his assessing officer - HELD THAT:- On this issue we have gone through the provision of section 40(ia). The law provide that if the assessee pays this tax then the same is allowable in the year when it is paid. Even the assessee on written submission sought relief that the AO be directed to allow the expenses in the year of payment of TDS. Looking to this provision and the specific relief sought by the assessee the ld. Assessing officer is directed to give the consequential relief in the year in which the tax has been paid by the assessee. In terms of these observation the ground are allowed for statistical purpose. Exemption of 80IB in respect of Duty Drawback - HELD THAT:- Assessee fairly admitted that the issue is pending before the supreme court which was decided by the ITAT against the assessee and has not been decided yet. Therefore, the assessee prayed that when the supreme court pass the order the consequential relief be implemented in the years also. The bench fairly admitted the plea of the assessee and the assessing officer is directed to give necessary appeal effect arising out of the order of the supreme court in the case of the assessee. As decided in assessee own case [2018 (2) TMI 1704 - ITAT JAIPUR] particular receipt which is found to be not income/profit derived from the business of the eligible undertaking has to be excluded for the purpose of computing the deduction u/s 80IB. Hence, we find that the case of the assessee does not fall in the category where the Assessing Officer has accepted the business of the assessee undertaking as eligible for deduction u/s 80IB in the initial year but has taken a difference stands in the subsequent years. Further, a year before us is not the first year in which the claim of the assessee u/s 80IB in respect of Vishesh Krishi Upaj Yojana and Drawback Duty has been denied but this was denied in the earlier years and for the Assessment Year 2008-09, the matter has been carried to the Hon’ble Jurisdictional High Court but the assessee could not succeed. Hence, we do not find any substance in the ground of the assessee’s appeal same is dismissed.
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