TMI Blog2014 (4) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 40(a)(ia) - the assessee has proved that amount was paid on behalf of the assessee by its agent - there was sufficient evidence to show and as a matter of fact the Tribunal has recorded that the assessee had proved that MGEPL was acting as an agent – thus, as such no substantial question of law arises for consideration – Decided against Revenue. - ITAT 219 OF 2012 - - - Dated:- 5-4-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns on behalf of the assessee-company. The argument that Malhotra Eximp Pvt. Ltd. is a group company and the advertisements are arranged from J. J. Communications by this company on behalf of the assessee-company does not exempt the assessee from deduction of tax at source while making payments or while crediting the amounts to Malhotra Global Eximp Pvt. Ltd. From the documents enclosed with the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the Revenue. The Tribunal opined as follows : Therefore, these expenses cannot be disallowed to the assessee if MGEPL has deducted and paid TDS on behalf of the assessee without violating the condition mentioned in section 40(a)(ia). Since in this case the assessee has proved that amount of Rs. 1,20,84,768 was paid on behalf of the assessee by its agent. Under thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere turned down both by the appellate authority as also the Tribunal. We may only add that there was sufficient evidence to show and as a matter of fact the Tribunal has recorded that the assessee had proved that MGEPL was acting as an agent. The question raised by the Assessing Officer as to why should MGEPL act without any profit motive is answered by section 185 of the Contract Act which provid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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