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2023 (3) TMI 1192 - AT - Income TaxDisallowance of expenditure/business loss - no income has been earned during the year - HELD THAT:- In assessee’s own group concern case in Hike Private Limited [2022 (9) TMI 1434 - ITAT DELHI] ITAT had noted the proposition that earning of income is not necessary for allowing of expenditure. Assessee has started earning revenue from the next year which has been duly submitted before us in the form of paper book. We are of the opinion that the authorities below have erred in disallowing the assessee’s business loss and the same needs to be allowed. Addition u/s 40(a)(ia) - payment was statutory charges made to HUDA for granting license by Directorate of Town and Country Planning, Haryana - HELD THAT:- We refer to Hon’ble jurisdictional High Court decision in the case of BPTP Ltd. [2020 (1) TMI 56 - DELHI HIGH COURT] wherein it is held that EDC are in the nature of statutory fees. We note that ld. CIT (A) has already granted relief to the assessee on the ground that section 40(a)(ia) applies to expenses claimed in P&L account. Since the assessee’s claim that expenses were not debited to P&L account is correct, ld. CIT (A) held that there is no question of disallowance of expenses. We find that other case laws in this regard relied upon by the assessee also support the proposition that no TDS is required to be deducted on payments made to HUDA for EDC. - Decided against revenue.
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