Brief : Discounts are given for business exigencies to everyone and as such discounts are neither salary nor commission, provisions of section 40(b) are not applicable to such discounts.
Citation : I.T.O. Vs. Dhiman Systems
Applicability of Section 40(b)
I.T.O. Vs. Dhiman Systems 12/29/2004
IT Appeal No. 52(ASR) of 2001
Case Fact: Whether provisions of section 40(b) are applicable to discounts on purchases given to partners where such discounts are given to all purchasers.
Decision: Held that as discounts are given for business exigencies to everyone and as such discounts are neither salary nor commission, provisions of section 40(b) are not applicable to such discounts.
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