What is the leading case on Section 40A(5) of the Income Tax Act?

Commissioner of Income-Tax v. V.M. Salgaocar and Brothers Pvt. Ltd. (198 ITR 738) is the decision most relied on for Section 40A(5), cited in 3 judgments.

Which cases are most cited on Section 40A(5)?

Commissioner of Income-Tax v. V.M. Salgaocar and Brothers Pvt. Ltd. (198 ITR 738) — 3 citing judgments; Commissioner of Income Tax v. M.K. Vaidya (224 ITR 186) — 3 citing judgments.

How many judgments are there on Section 40A(5)?

BharatTax indexes 51 ITAT, High Court and Supreme Court judgments that turn on Section 40A(5) of the Income Tax Act, 1961.

Section 40A(5) of the Income Tax Act

Income-tax Act, 2025: s.36

Section 40A(5) falls under section 40A of the Income-tax Act, 1961, which corresponds to section 36 (Expenses or payments not deductible in certain circumstances) of the Income-tax Act, 2025.

Read section 36 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 40A(5) is Commissioner of Income-Tax v. V.M. Salgaocar and Brothers Pvt. Ltd. (198 ITR 738), cited in 3 of the 51 judgments on BharatTax that turn on this section.

Leading authorities on Section 40A(5)

Commissioner of Income-Tax v. V.M. Salgaocar and Brothers Pvt. Ltd.

198 ITR 738 · 1992 · Reported

citing judgments

Commissioner of Income Tax v. M.K. Vaidya

224 ITR 186 · 1997 · High Court

citing judgments

Judgments on Section 40A(5)

Smithkline Beecham Consumer Brands Ltd vs. Commissioner of Income Tax Patiala

ITR/62/1995HC Punjab & Haryana27 Nov 2025

Section 143Section 35BSection 40Section 40A(5)

Zee Marketing (Guj.) Private Limited, Ahmedabad vs. The Dy. Commissioner of Income Tax, Central Circle-1(1), Ahmedabad

In the result, the appeal preferred by the assessee is partly allowed

ITSSA 19/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad08 Mar 2024AY 2016-17

Bench: Smt.Annapurna Gupta & Ms. Madhumita Royi.T(Ss).A. No. 19/Ahd/2023 ("नधा"रण वष" / Assessment Year : 2016-17) Zee Marketing (Guj.) The Dy. Commissioner Of बनाम/ Private Limited Income Tax Vs. 304, Aakansha Building, Central Circle 1(1), Opp. Vadilal House, Ahmedabad Navrangpura, Ahmedabad - 380009 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacz0627K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri M. S. Chhajed, Ar अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Shri Akhilendra Pratap Yadaw, Cit. D.R. सुनवाई क" तार"ख / Date Of 29/02/2024 Hearing घोषणा क" तार"ख /Date Of 08/03/2024 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Instant Appeal Filed At The Behest Of The Assessee Is Directed Against The Order Dated 23.12.2022 Passed By The Ld. Commissioner Of Income Tax (Appeals)-11, Ahmedabad (In Short ‘Cit(A)’) Arising Out Of The Order Dated 30.12.2018 Passed By The Acit, Central Circle-1(1), Ahmedabad Under Section 143(3) R.W.S. 153A Of The Income Tax Act, 1961, (Hereinafter Referred To As ‘The Act’) For Assessment Year 2016-17. It(Ss)A No. 19/Ahd/2023 (Zee Marketing (Guj.) Pvt. Ltd. Vs. Dcit) A.Y.– 2016-17 - 2 - 2. The Assessee Has Come Up In Appeal With The Following Grounds:

For Respondent: Shri Akhilendra Pratap Yadaw, CIT

Section 143(3)Section 309

ITO, New Delhi vs. M/S. Modipon Ltd., Uttar Pradesh

In the result appeal filed by the revenue stands dismissed

ITA 5757/DEL/2014[1984-85]Status: DisposedITAT Delhi13 Dec 2017AY 1984-85

Bench: Shri P.K. Bansal & Smt. Beena A Pillaiay: 1984-85 The Ito Vs. Modipon Ltd. Ward 5(4) Hapur Road New Delhi Opp. Nagar Palika Modinagar 201 204 Uttar Pradesh Pan: Aaacm 2069 E (Appellant) (Respondent) Appellant By Sh. P.Damkanunjna, Sr.D.R. Respondent By Sh. Santosh Aggarwal, Adv. Date Of Hearing 11.12.2017 Date Of 13.12.2017 Pronouncement Order Per Beena A Pillaithe Present Penalty Appeal Has Been Filed By Revenue Against Order Dated 27/08/14 Passed By Ld.Cit(A)-8, New Delhi For Assessment Year 1984-85 On The Following Grounds Of Appeal: “1. Whether On The Facts & Circumstances Of The Case & In Law, The Ld.Cit(A) Has Erred In Deleting The Penalty Of Rs.20,72,130/- Imposed By The Ao On Account Of Addition Made U/S 37(4) & 40A(5) Of The Income Tax Act, 1961 (The Act)?

Section 143Section 256(1)Section 30Section 37Section 37(4)Section 43

ACIT, Faridabad vs. M/S Va Tech Esher Wyss Flovel Ltd, Faridabad

In the result, appeal of the Revenue is allowed partly for statistical purposes

ITA 1675/DEL/2010[2005-06]Status: DisposedITAT Delhi13 Nov 2017AY 2005-06

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2005-06 Vs. M/S. Va Tech Esher Wyas Asstt. Commissioner Of Income Tax, Circle I, Block –I-B, Cgo Flovel Ltd., 49/5, Mathura Road, Complex, Nh-4, Faridabad Village Prithla, Faridabad Pan : Aaacf0010A (Appellant) (Respondent) Assessee By Sh. Ashwani Taneja, Adv. Department By Sh. H.K. Choudhary, Cit(Dr) Date Of Hearing 23.10.2017 Date Of Pronouncement 13.11.2017 Order Per O.P. Kant, A.M.:

Section 143(2)Section 92C