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2020 (10) TMI 718 - AT - Income TaxTDS u/s 194J - Disallowance u/s 40(a)(ia) - failure to withhold tax on payments made to Nokia Corporation towards purchase of end user operating software, purchase of hardware and finished goods and purchase of software embedded in finished goods - HELD THAT:- As decided in own case [2020 (2) TMI 1038 - ITAT DELHI] AO has not given any reasoning or finding to the extent that there is payment for technical service liable for withholding under Section 194J. Marketing activities have been undertaken by HCL on its own. Merely making an addition under Section 194J without the actual basis for the same on part of the Assessing Officer is not just and proper. DR’s contention that discounts were given by way of debit notes and the same were not adjusted or mentioned in the invoice generated upon original sales made by the assessee, does not seem tenable after going through the invoice and the debit notes. In fact, there is clear mentioned about the discount for sales promotion. Thus, on both the account the addition made by the Assessing Officer does not sustain. - Decided in favour of assessee. Disallowance on account of trade price protection paid by the assessee - HELD THAT:- Following the order of the Co-ordinate Bench for A.Y. 2010-11 in assessee’s own case [2020 (2) TMI 1038 - ITAT DELHI] and for similar reasons hold that the disallowance on account of trade price protection was not warranted in the present case. We therefore, set aside the action of AO. Thus ground of appeal of the assessee is allowed. Disallowance of warranty expenses - HELD THAT:- As relying on case A.Y. 2010-11 in assessee’s own case [2020 (2) TMI 1038 - ITAT DELHI] disallowance was not warranted in the present case. We therefore, set aside the addition made by AO. Thus ground of appeal of the assessee is allowed.
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