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2016 (7) TMI 1009 - AT - Income TaxTDS u/s 194C - disallowance on account of advertisement expenditure on the basis that the TDS was not deducted - Held that:- The matter requires re-consideration at the level of the ld. CIT(Appeals). The assessee filed copy of certificate from Association at page 13 of the Paper Book in which it was certified that the association gives advertisement of all the learning centres of Punjab Technical University, Distance Education Program in Punjab to the print media. The shares of cost of advertisement is recovered from the regional centres. The amount in question was recovered from the assessee as its share for advertisement. The entire TDS of whole amount was deducted and deposited in the bank. PB-14 to 54 are the details of TDS deducted by association and paid - Decided in favour of assessee by way of remand. Disallowance on account of interest - Held that:- The assessee is proprietor of Chandigarh Computer Centre and in the assessment year under appeal, has capital of ₹ 14,51,117/-. The net profit in the year under consideration comes to ₹ 6,90,288/-, thus, total capital of assessee comes to ₹ 21,41,405/-. Further, assessee has interest free unsecured loan of ₹ 5 lacs from Shri Joginder Singh. These amounts/funds are sufficient to cover up the interest free advances given to the family members in a sum of ₹ 14,25,000/-. Hon'ble Punjab & Haryana High Court in the case of Kapson Associates [2015 (8) TMI 1277 - PUNJAB AND HARYANA HIGH COURT ] held that " when assessee having sufficient interest free advances to cover interest free advances, no disallowance under section 36(1)(iii) could be made". Following the above judgement and considering facts of the case, set aside the orders of authorities below and delete the addition - Decided in favour of assessee Addition paid on account of franchise fees as capital expenditure - Held that:- In the way of obtaining franchise for educational program and paying licence fees, no capital asset came into existence and there was no advantage of enduring benefit to the business of the assessee. Since there is no existence of any asset and no enduring benefit have been taken by the assessee, therefore, authorities below were wholly unjustified in considering it to be capital expenditure in nature. The expenses are clearly revenue in nature - Decided in favour of assessee
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