2014 (5) TMI 1177

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....ni Taneja, Advocate. ORDER G.D.Agrawal, VP : This appeal by the Revenue is directed against the order of learned CIT(A)-XIII, New Delhi dated 16th March, 2012 for the AY 2007- 08. 2. The Revenue has raised the following ground of appeal:- "On the facts and circumstances of the case and in law, the ld.CIT(A) has erred in deleting the addition of Rs. 49,20,000/- made on account ....

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....rvations of their Lordships at paragraph 11 of the judgment read as under:- "11. Lastly, we fail to understand how the provisions of section 40A(2)(b) are, at all, applicable in the facts of the present case. Section 40A(2)(a) runs as under :- "(2)(a) Where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person referred to in claus....

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....]. The emphasized words clearly show that actual payment must be made and there has to be an expenditure incurred before the provision can be said to be applicable. A trade discount, and admittedly it is not in dispute that the subject-matter of the claim is a trade discount, and not an expenditure, clearly therefore there does not arise the question of applicability of section 40A(2)(b)." 5. T....