TMI Blog2023 (3) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... s inserted w.e.f. 1.4.2013. Both these provisos were inserted to remove an anomaly and were therefore curative and declaratory in nature. Hence they had to be given retrospective effect. Grounds of the appeal of the assessee deserves to be allowed and the disallowance/addition made by the A.O. which was sustained by the CIT(A) is hereby quashed. - I.T.A. No. 1257/DEL/2020 I.T.A. No. 1258/DEL/2020 , I.T.A. No. 1259/DEL/2020 - - - Dated:- 13-3-2023 - SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER And SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER For the Assessee : Shri Ashwani Kumar Garg, Advocate; For the Department : Shri Ganga Dhar panda, [CIT] - D. R.; ORDER PER YOGESH KUMAR U.S., JM These three appeals are filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was not the payer of the said broadcasting revenue and had not claimed any such expenditure. 4. Therefore, without prejudice to Ground No. 1 2 above, the disallowance in the hands of the appellant-assessee cannot exceed the chargeable sum paid to the FOWC which is Rs. 305,822,666 (501,952,442 -196,129,776) only. DISALLOWANCE OF LEASE RENT PAID TO A RESIDENT WITHOUT DEDUCTION OF TAX 5. That the learned CIT (A) has erred in upholding the disallowance, under clause (ia) of s. 40(a) of the Act, of business expenditure of Rs. 43,612,876 being the lease rent paid by the appellant-assessee to Yamuna Expressway Industrial Development Authority without deduction of tax. 6. That in upholding the above disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the assessment of FOWC). In support of the above contention, the assessee relied on the CBDT Circular No. 3/2015 dated 12/02/2105 followed by Circular dated 26/10/2016 wherein the CBDT has clarified that only chargeable sum paid is liable to be disallowed u/s 40a(ia) of the Act. The CIT(A) is of the opinion that no disallowance could be made in respect of RPC fees for the reason that the relevant income had been declared and assessed in the hands of the payee and tax thereon had been paid. However, the CIT(A) has accepted that disallowance should be restricted to the chargeable sum comprised in the Grossed RPC fess as assessed in the hands of FOWC. The CIT(A) while determining the chargeable sum in the RPC fees with the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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