Applicability of Section 40(b) ::
Last updated: 05 September 2007
Court :
Tribunal
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.
CA.Saibaburao Nanduri
Published in Income Tax
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