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2013 (12) TMI 62 - ITAT MUMBAICourse execution charges – Held that:- The appellant was imparting training in the field of computer and information technology in collaboration with US based company. The appellant was conducting examinations and giving certificates to students in India on behalf of US company. For that purpose, the appellant was collecting testing fees from the students and remitting to the same to the US company. The appellant filed entire details of expenses to the AO. In the facts and circumstances, the AO was not justified in making part disallowances that too on adhoc basis - The assessee filed entire details of the expenditures actually incurred, before the AO and the AO had not doubted the genuineness of the claim of the assessee. In the absence of any contrary material on record, the order of CIT(A) is upheld – Decided against Revenue. Franchisee management fee – Held that:- The major source of revenue was the sales proceeds received from the franchisees - The appellant was paying management fee to the franchisees from year to year and the said payment has been accepted as appellant's business expenses. The AO did not doubted the genuineness of such payment of management fee to the franchisees – The disallowance was made on the basis of comparison made with the receipts and payments of immediately previous assessment year 2001-02 only The CIT(A) held that the AO has made disallowance on the basis of incorrect figures – The ld. DR could not bring any material to controvert the facts stated by ld. CIT(A) - The AO has made the disallowance by comparing a wrong figures of the previous year on adhoc basis – Decided against Revenue.
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