- (1.) We have heard Shri Shambhu Chopra, learned counsel for the appellant. This income tax appeal under Section 260(A) of the Income Tax Act, 1961 arises out of the judgment and order of the Income Tax Appellate Tribunal in ITA No. 5219/Del/2012 for the assessment year 2009-10.
(2.) The department has pressed the only question of law as follows:- (a) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT has rightly confirmed the order of the CIT (A) and thereby deleting the disallowance of Rs. 1,17,68,621/- made by the Assessing Officer under section 40(a)(ia) of the I.T. Act, 1961 by ignoring the fact that the company M/s. Mercator Lines Ltd. had performed ship management work on behalf of the assessee M/s. Vector Shipping Services (P) Ltd. and there was a Memorandum of Understanding signed between both the companies and as per the definition of memorandum of understanding, it included contract also.
(3.) In the present case the A.O. disallowed expenses on the ground that under Section 40(a)(ia) expenses could not be allowed as no tax was deducted at source under Chapter XVII (B).;