Expenses disallowed due to contravention of section 40(a)(ia) r/w section 195 of the Income Tax Act

Last updated: 24 June 2021
Quick Summary
This case involves an appeal by M/s Prime Oceanic Pvt. Ltd. concerning disallowed expenses. The Assessing Officer (AO) disallowed Rs. 28,40,000 in sales promotion expenses paid to Trans Coral Shipping, FZE, UAE, citing a failure to deduct tax at source under Section 195 of the Income Tax Act. The AO viewed this payment not as an expense but as a distribution of income. Additionally, a lump sum of Rs. 1,60,000 was disallowed from various other expenses like vehicle, fuel, and telephone costs.

Court :
ITAT Jaipur

Brief :
This is an appeal filed by the assessee against the order of ld. CIT(A)-22, Alwar dated 26.02.2019 wherein the assessee has taken the following grounds of appeal:-

Citation :
ITA No. 652/JP/2019

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1999
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3499
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