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2020 (2) TMI 1466 - AT - Income TaxDisallowance of TDS paid on license fees on VISA cards - reason to confirm the disallowance on VISA card is the fact that the terms of Master Card and VISA cards have been found to be at variance - HELD THAT:- As noted by Ld. CIT(A), Article-11 of agreement with VISA cards mandated assessee to provide proof of payment of taxes and nothing more and there were no specific stipulations that the payment of the same would constitute assessee’s liability - the fact that whether the said expenditure was reimbursable by VISA or not, was not brought on record. The answer to the same would be vital to clinch the issue in proper perspective. Obviously, if the expenditure was non-reimbursable in nature and it was borne by the assessee himself, the same would certainly become assessee’s liability and hence an allowable expenditure as held in earlier years. On the contrary, if the expenditure was reimbursable in nature, it would materially alter the assessee’s claim of deduction. The submissions made by Ld. AR also do not throw much light on this fact and the observation made by Ld. CIT(A) has remained unaddressed. Therefore, with a view to bring on recordclear facts and to dispel the concerns raised by Ld. DR, we restore the matter back to the file of Ld. CIT(A) with a direction to ascertain the correct facts. The assessee is directed to provide the requisite details / information. Needless to add that, if the expenditure was non-reimbursable in nature, the same would be an allowable deduction otherwise not. Assessee appeal allowed for statistical purposes
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