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2011 (12) TMI 226 - AT - Income TaxBusiness expenditure - CIT(A) deleted disallowance of various expenses – expenses disallowed by A.O. on ground that same have been incurred by Shriram Group Companies(SGC) though paid by assessee – invoices are raised in name of Shriram group of companies – absence of agreement between assessee & SGC for incurrence of such expenses – Held that: Revenue did not brought any material on record to show that the expenses were not incurred for the purposes of the assessee's business. In our considered opinion, the maintaining or writing in the vouchers in a particular manner will not empower the A.O. to disallow genuine business expenses of the assessee. No material has been brought on record by the Revenue to controvert the findings of the CIT(A) that A.O. accepted that all the expenses are genuine and all the payments are made by cheques . Further assessee has earned income from these services also, it could not have earned the same without incurring the expenses separately. Thus, we do not find any good and justifiable reason to interfere with the order of the CIT(A) – Decided against the revenue. Deletion of disallowance u/s 40(a)(ia) by CIT(A) on ground that the payments were covered u/s 194J and not by the provision of section 194H - Held that:- If the assessee is able to produce evidence to show that the persons to whom the consultancy charges have been paid are registered with IRDA, then they are to be treated as payments made towards professional charges and will be governed by the provision of section 194J. In any other case, where payment is made by way of commission or otherwise for soliciting or procuring insurance business by persons who are not registered with IRDA, then the same will be governed by the provision of section 194D. If the deduction of TDS is not made in accordance with the above sections, then the amounts so paid is to be disallowed. The provision of section 194H would have no applicability as the business of the assessee is insurance broking and section 194H specifically excludes insurance commission. We, therefore, set aside the orders of lower authorities and remand the matter back to the file of the Assessing Officer for adjudicating the issue afresh in the light of the discussions as made hereinabove – Decided in favor of Reveue for statistical purposes.
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