← All Phrases

“disallowance under section 40(a)(ia)”

DisallowancesSection 40(a)(ia)Section 40(a)(ia)406 judgments

The decision most relied on for disallowance under section 40(a)(ia) is S.A. Builders Ltd. v. CIT (288 ITR 1), cited in 1,484 judgments on BharatTax.

Leading authorities on disallowance under section 40(a)(ia)

S.A. Builders Ltd. v. CIT
288 ITR 1 · 2007 · Supreme Court
1,484
citing judgments

Interest paid on borrowed funds cannot be disallowed merely because the assessee made interest-free advances, provided those advances were made for business purposes and commercial expediency. The Revenue cannot dictate a businessman's commercial decisions, but the assessee bears the onus to prove the business expediency.

CIT v. Reliance Industries Ltd.
410 ITR 466 · 2019 · Supreme Court
501
citing judgments

When mixed funds are available, interest-free advances are presumed to be made from the assessee's own interest-free funds, preventing disallowance of interest expenditure under section 36(1)(iii). This principle also applies to section 14A disallowance, where interest expenditure is not disallowed if surplus funds are available and no direct nexus is established with borrowed funds for investments earning exempt income.

CIT v. Dalmia Cement (Bharat) Ltd.
254 ITR 377 · 2002 · High Court
417
citing judgments

When there is a nexus between an expenditure and the purpose of business, incurred on grounds of commercial expediency, the Revenue cannot question its reasonableness or assume the role of the businessman to compel profit maximization. This principle applies even if the business is not that of the assessee itself.

HDFC Bank Ltd. v. DCIT
383 ITR 529 · 2016 · High Court
408
citing judgments

Where an assessee has sufficient interest-free funds, investments yielding exempt income are presumed to be made out of such funds, precluding disallowance of related interest expenditure under section 14A.

CIT v. Winsome Textile Industries Ltd.
319 ITR 204 · 2009 · High Court
378
citing judgments

Section 14A of the Income-tax Act, 1961, which disallows expenditure incurred in relation to exempt income, is not applicable if the assessee has not earned any exempt income in the relevant assessment year.

CIT v. Ansal Land Mark Township (P) Ltd.
377 ITR 635 · 2015 · High Court
369
citing judgments

The second proviso to Section 40(a)(ia), introduced by the Finance Act, 2012, is curative and applies retrospectively from April 1, 2005. Consequently, if the recipient of a payment has filed their return and paid taxes on the amount from which tax was not deducted at source, the payer's expenditure cannot be disallowed under Section 40(a)(ia).

Taparia Tools Ltd. v. JCIT
372 ITR 605 · 2015 · Supreme Court
343
citing judgments

An expenditure does not automatically become capital in nature merely because it results in some enduring benefit for the assessee; it can be treated as revenue expenditure if incurred for genuine business purposes.

CIT v. Taikisha Engineering India Ltd.
370 ITR 338 · 2015 · High Court
252
citing judgments

The disallowance under Section 14A of the Income-tax Act, read with Rule 8D, cannot exceed the actual exempt income earned by the assessee in the relevant previous year. If no exempt income is earned, no disallowance under Section 14A can be made.

Judgments citing disallowance under section 40(a)(ia)

Royal Twinkle Star Club Pvt. Ltd, Mumbai vs. DCIT Central Circle-2(1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1014/MUM/2019[2015-16]Status: DisposedITAT Mumbai11 May 2023AY 2015-16

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club Pvt. Ltd, Mumbai vs. DCIT Circle 2 (1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1013/MUM/2019[2013-14]Status: DisposedITAT Mumbai11 May 2023AY 2013-14

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club Pvt. Ltd., Mumbai vs. DCIT Central Circle-2(1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1012/MUM/2019[2012-13]Status: DisposedITAT Mumbai11 May 2023AY 2012-13

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club P.Ltd, Mumbai vs. ACIT Cen Cir 2(4), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1429/MUM/2018[2014-15]Status: DisposedITAT Mumbai11 May 2023AY 2014-15

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club P.Ltd, Mumbai vs. ACIT Cen Cir 2(4), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1428/MUM/2018[2013-14]Status: DisposedITAT Mumbai11 May 2023AY 2013-14

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club P.Ltd, Mumbai vs. DCIT Cen Cir 2(4), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1427/MUM/2018[2011-12]Status: DisposedITAT Mumbai11 May 2023AY 2011-12

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club P.Ltd, Mumbai vs. DCIT Cen Cir 2(4), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1426/MUM/2018[2010-11]Status: DisposedITAT Mumbai11 May 2023AY 2010-11

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

Royal Twinkle Star Club P.Ltd, Mumbai vs. DCIT Cen Cir 2(4), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical purposes

ITA 1425/MUM/2018[2009-10]Status: DisposedITAT Mumbai11 May 2023AY 2009-10

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

Section 147Section 194ASection 250Section 40

Revenue’s approach of treating the Non-Availing Compensation (“NAC”) paid by the assessee to its members as interest, which was disallowed under section 40(a)(ia) for non-deduction of tax under section 194A of the Act. Royal Twinkle Star Club ... issue arising in ground no.1.f, raised in assessee’s appeal, is pertaining to considering 30% of NAC for the purpose of disallowance under section 40(a)(ia) of the Act instead of the entire amount. 52. The learned CIT(A), vide impugned order, held that the amendment to section 40

ACIT Circle-25(1), New Delhi vs. Red Ice Production Pvt Ltd, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 8061/DEL/2019[2013-14]Status: DisposedITAT Delhi08 May 2023AY 2013-14

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandraasstt. Year: 2013-14

For Appellant: Shri Sanjay Gupta, CAFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 143(3)Section 195Section 40Section 9Section 9(1)(vii)

payments made to the non-resident service providers by the assessee are not chargeable to tax in India and thus no disallowance under section 40(a)(ia) of the Act is called for on account of non-deduction of tax at source thereof. Nothing has been brought on record

Chandigarh Freight Carrier, Meerut vs. Pr. CIT, Ghaziabad

In the result, appeal of the assessee is accordingly allowed

ITA 500/DEL/2021[2015-16]Status: DisposedITAT Delhi28 Apr 2023AY 2015-16

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma[Assessment Year: 2015-16] Chandigarh Freight Carrier Vs. Pr. Cit 329, Uttam Nagar, Gupta Colony Ghaziabad Meerut, Uttar Pradesh-250 002 Pan No. Aahfc 1874 H [Appellant] [Respondent]

For Appellant: Shri Manish Jain, C.AFor Respondent: Ms Sapna Bhatia, CIT-DR
Section 143(3)Section 194Section 194C(6)Section 194C(7)Section 263Section 40

section 194C(6) are independent of section 194C(7), and just because there is violation of provisions of section 194C(7), disallowance under section 40(a)(ia) does not arise if the assessee complies with the provisions of section 194C(6)," Relief may please be granted by quashing the revision

Javaharlal S Dhariwal, Surat vs. ITO Ward 1(2)(2), Surat

In the result, appeal of the assessee is partly allowed

ITA 203/SRT/2020[2013-14]Status: DisposedITAT Surat28 Apr 2023AY 2013-14

Bench: Shri Pawan Singhआ.अ.सं./Ita No.203/Srt/2020 (Ay 2013-14) (Hearing In Physical Court) Javaharlal S Dhariwal Income Tax Officer, 886 Old Gidc, Nr. Bank Of Ward-1(2)(2), Surat-395001 Vs Baroda, Katargam, Surat- 395004 Pan No: Aaypd 4207 G अपीलाथ"/Appellant ""यथ" /Respondent "नधा"रती क" ओर से /Assessee By Shri Mahul Shah, C.A राज"व क" ओर से /Revenue By Shri Vinod Kumar, Sr-Dr सुनवाई की तारीख/Date Of Hearing 02.02.2023 उ"घोषणा क" तार"ख/Date Of 28.04.2023 Pronouncement Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By Assessee Is Directed Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)-2, Surat [For Short To As “Ld.Cit(A)”] Dated 30.01.2020 For Assessment Year 2013- 14, Which In Turn Arises Out Assessment Order Passed By Income-Tax Officer-Ward-1(2)(2), Surat/Assessing Officer Under Section 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Dated 12.02.2016. The Assessee Has Raised The Following Grounds Of Appeal:- “1. On The Facts & Circumstances Of The Case As Well As Law On The Subject, The Learned Cit(A) Has Erred In Confirming The Action Of Assessing Officer In Making A Disallowance Of Rs.3,45,378/- U/S 40(A)(Ia) Of The It Act 1961. Javaharlal S Dhariwal 2. On The Facts & Circumstances Of The Case As Well As Law On The Subject The Learned Cit(A) Has Erred In Partly Confirming The Action Of Assessing Officer By Sustaining The Disallowance Of Rs.2,46,915/- Out Of Total Disallowance Of Rs.4,93,830/- On Account Of Machinery Salary Expenses. 3. On The Facts & Circumstances Of The Case As Well As Law On The Subject, The Learned Cit(A) Has Erred In Confirming The Action Of Assessing Officer In Making Addition Of Rs.3,95,466/- Being Interest Expenses Claimed U/S 57 Of The Act.

Section 143(3)Section 194CSection 254(1)Section 40Section 57

Representative (Ld.AR) for the assessee and Ld. Senior Departmental Representative and perused the materials available on record. Ground No.1 relates to addition / disallowance under section 40(a)(ia) of Rs.3,45,378/-. Ld. AR for the assessee submits that before Assessing Officer, the assessee furnished all details as required

DCIT (TDS)(OSD)-2(3), Mumbai vs. Uber India Systems Pvt Ltd, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 126/MUM/2023[2019-20]Status: DisposedITAT Mumbai26 Apr 2023AY 2019-20

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Hiten ChandeFor Respondent: Shri Ankush Kapoor
Section 165ASection 204Section 250

hands of UISPL and has assessed UISPL as a marketing and support service provider to Uber B.V. without making any disallowance under section 40(a)(ia). Hence, in the absence of any change in the facts and circumstances of the case, the department is not permitted to take a different

ITO, Ward-3(3)(4), Surat vs. M/S. Satyam Enterprise, Surat

In the result, this part of issue is allowed for statistical purpose

ITA 169/SRT/2020[2013-14]Status: DisposedITAT Surat06 Apr 2023AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Physical Hearing) I.T.O., M/S Satyam Enterprise, Ward- 3(3)(4), 182-Thakordwar Society, Nr. Vs. Surat. Spinning Mill, Varachha Road, Surat. Pan No. Abvfs 5076 L Appellant/ Assessee Respondent/ Revenue

Section 201Section 254(1)Section 40

expenses. Thus, the Assessing Officer on the basis of report of auditor and in absence of complete details of contract payments, made disallowance under Section 40(a)(ia) of the Income Tax Act, 1961 (in short, the Act) of Rs. 3,28,67,900/- while passing the assessment order ... submissions vide submission dated 08/09/2018. The submission of assessee are recorded in para 4 of order of ld. CIT(A). On the disallowance under Section 40(a)(ia) of the Act, the assessee submitted that the Assessing Officer disallowed the entire amount of Rs. 3.28 crores under Section 40

M/S N. A. Shaikh, Ankleshwar vs. Income Tax Officer, Ward-2(5), Bharuch

In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes

ITA 94/SRT/2023[2014-15]Status: DisposedITAT Surat28 Mar 2023AY 2014-15

Bench: Shri Pawan Singh(Physical Hearing) M/S N.A. Shaikh, I.T.O., Shop No. 1, Old Shopping Centre, Ward 2(5), Vs. Nr. Pratin Crossing, Gidc, Bharuch. Ankleshwar-393002. Pan No. Aabfn 9617 R Appellant/ Assessee Respondent/ Revenue

Section 2Section 250(6)Section 254(1)Section 40

additions , which includes disallowance of non-genuine creditors of Rs. 26,13,297/-, excess claim of depreciation of Rs. 2,33,252/-, disallowance under section 40(a)(ia) of Rs. 36,080/-, disallowance of expenses and addition of interest on income tax refund of Rs. 1,37,942/-. On further

Shri Shri Sushil Kumar Agrawal, Korba, Korba(Cg) vs. The Joint Commissioner of Income Tax, Range Korba, Korba(Cg)

In the result, appeal of the assesee in ITA No

ITA 94/BIL/2017[2011-12]Status: DisposedITAT Raipur27 Mar 2023AY 2011-12

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos. 93 & 94/Rpr/2017 "नधा"रण वष" / Assessment Years: 2010-11 & 2011-12 Shri Sushil Kumar Agrawal, Prop. Of M/S. Shrikishan & Co., T.P Nagar, Korba (C.G.) Pan : Acgpa4350B .......अपीलाथ"/Appellant बनाम / V/S. The Joint Commissioner Of Income Tax, Korba (C.G.) ……""यथ" / Respondent

For Appellant: Shri Y.K Mishra, AdvocateFor Respondent: Shri Choudhary N.C Roy, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 14ASection 234BSection 40Section 68

under: “19. In yet another alternative attempt, learned counsel for the appellant has argued that by way of Finance (No.2) Act, 2014, disallowance under Section 40(a)(ia) has been limited to 30% of the sum payable and the said amendment deserves to be held retrospective in operation. This line ... Finance (No.2) Act of 2014. 19.1. By the amendment brought about in the year 2014, the legislature reduced the extent of disallowance under Section 40(a)(ia) of the Act and limited it to 30% of the sum payable. On the other hand, by the Finance Act of 2010, which

Shri Shri Sushil Kumar Agrawal, Korba, Korba(Cg) vs. The Joint Commissioner of Income Tax, Range Korba, Korba(Cg)

In the result, appeal of the assesee in ITA No

ITA 93/BIL/2017[2010-11]Status: DisposedITAT Raipur27 Mar 2023AY 2010-11

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita Nos. 93 & 94/Rpr/2017 "नधा"रण वष" / Assessment Years: 2010-11 & 2011-12 Shri Sushil Kumar Agrawal, Prop. Of M/S. Shrikishan & Co., T.P Nagar, Korba (C.G.) Pan : Acgpa4350B .......अपीलाथ"/Appellant बनाम / V/S. The Joint Commissioner Of Income Tax, Korba (C.G.) ……""यथ" / Respondent

For Appellant: Shri Y.K Mishra, AdvocateFor Respondent: Shri Choudhary N.C Roy, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 14ASection 234BSection 40Section 68

under: “19. In yet another alternative attempt, learned counsel for the appellant has argued that by way of Finance (No.2) Act, 2014, disallowance under Section 40(a)(ia) has been limited to 30% of the sum payable and the said amendment deserves to be held retrospective in operation. This line ... Finance (No.2) Act of 2014. 19.1. By the amendment brought about in the year 2014, the legislature reduced the extent of disallowance under Section 40(a)(ia) of the Act and limited it to 30% of the sum payable. On the other hand, by the Finance Act of 2010, which

The Assistant Commissioner of Income-Tax-2(1)Bhilai, Bhilai(Cg) vs. M/S Sms Shivnath Infrasstructure Pvt Ltd., Durg, Durg(Cg)

In the result, appeal of the revenue in ITA No

ITA 87/BIL/2017[2012-13]Status: DisposedITAT Raipur27 Mar 2023AY 2012-13

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.87/Rpr/2017 (ननधाारण वषा / Assessment Year :2012-2013) Acit-2(1), Bhilai Vs M/S Sms Shivnath Infrastructure Pvt Ltd.,Toll Plaza, Near Dhamdhanaka, Durg. Pan No. :Aadcs 2258 Q (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. & आयकर अऩीऱ सं./Ita No.107/Rpr/2016 (ननधाारण वषा / Assessment Year :2012-2013) M/S Sms Shivnath Infrastructure Vs Pr.Cit-2, Raipur Pvt Ltd.,Toll Plaza, Near Dhamdhanaka, Durg. Pan No. :Aadcs 2258 Q (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri Kapil Hirani, Adv. & MukeshFor Respondent: Shri Debashis Lahiri, CIT-DR
Section 115JSection 143(3)Section 250(4)Section 36Section 80ISection 80l

such disallowance would ultimately increase assessee‟s profits from business of developing housing project. The ultimate profits of assessee after adjusting disallowance under section 40(a)(ia) of the Act would qualify for deduction u/s. 80IE of the Act would qualify for deduction u/s. 80IB of the Act. This view

M/S Sms Shivnath Infrastructure Pvt Ltd, Durg(Cg) vs. The Pr. Commissioner of Income Tax-2, Raipur (Cg)

In the result, appeal of the revenue in ITA No

ITA 107/BIL/2016[2011-12]Status: DisposedITAT Raipur27 Mar 2023AY 2011-12

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.87/Rpr/2017 (ननधाारण वषा / Assessment Year :2012-2013) Acit-2(1), Bhilai Vs M/S Sms Shivnath Infrastructure Pvt Ltd.,Toll Plaza, Near Dhamdhanaka, Durg. Pan No. :Aadcs 2258 Q (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. & आयकर अऩीऱ सं./Ita No.107/Rpr/2016 (ननधाारण वषा / Assessment Year :2012-2013) M/S Sms Shivnath Infrastructure Vs Pr.Cit-2, Raipur Pvt Ltd.,Toll Plaza, Near Dhamdhanaka, Durg. Pan No. :Aadcs 2258 Q (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri Kapil Hirani, Adv. & MukeshFor Respondent: Shri Debashis Lahiri, CIT-DR
Section 115JSection 143(3)Section 250(4)Section 36Section 80ISection 80l

such disallowance would ultimately increase assessee‟s profits from business of developing housing project. The ultimate profits of assessee after adjusting disallowance under section 40(a)(ia) of the Act would qualify for deduction u/s. 80IE of the Act would qualify for deduction u/s. 80IB of the Act. This view

Bharat Sanchar Nigam Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 1989/DEL/2017[2008-09]Status: DisposedITAT Delhi20 Feb 2023AY 2008-09

Bench: Shri N. K. Billaiya & Shri Anubhav Sharmabharat Sanchar Nigam Ltd, Vs. Acit, Taxation Section, First Floor, Circle-6(2), Bharat Sanchar Bhawan, New Delhi Janpath, New Delhi-11001 (Appellant) (Respondent) Pan:Aabcb5576G

For Appellant: Sh. Tarandeep Singh, AdvFor Respondent: Sh. Sukesh Kumar Jain, CIT DR
Section 143(3)Section 147Section 194HSection 250Section 40Section 9(1)(vi)Section 9(1)(vii)

erred in confirming the disallowance, without appreciating the fact that all distributors / franchisees are Indian residents and accordingly, no disallowance under Section 40(a)(ia) of the Act can be made, where conditions prescribed under second proviso to Section 40(a) (ia) of the Act inserted vide Finance

The ITO, Ward-1 (2) (2), Rajkot-Gujarat vs. M/S Srv Metals Private Limited, Rajkot-Gujarat

In the result, appeal filed by the Revenue is allowed for statistical purpose

ITA 428/RJT/2015[2009-10]Status: DisposedITAT Rajkot15 Feb 2023AY 2009-10

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2009-10

For Appellant: NoneFor Respondent: Shri B.D. Gupta, Sr. DR
Section 10BSection 142(1)Section 143(3)Section 40Section 43BSection 68

Assessing Officer made addition on account of low GP under Section 68 of the Act, disallowance under Section 43B of the Act, disallowance under Section 40(a)(ia) of the Act, disallowance out of Director’s remuneration and disallowance out of administrative expenses and assessed total income at Rs.2