Applicability of Section 40(b) ::

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.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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