Guarantee commission not 'Levy' for the purposes of disallowance under Section 40(a)(iib) of the IT Act
Last updated: 15 November 2021
Court :
ITAT Bangalore
Brief :
In M/s. Krishna Bhagya Jala Nigam Ltd. v. Assistant Commissioner of Income Tax, Bangalore [ITA 3064 /BANG/2018, decided on November 10, 2021], Hon'ble Income Tax Appellate Tribunal, Bangalore ("ITAT") held that guarantee commission paid in consideration for the state government agreeing to suffer a detriment in the event of non-payment of the bonds on its maturity and is merely a contractual paymentand not levy.
Citation :
ITA 3064 /BANG/2018, decided on November 10, 2021
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Bimal Jain
Published in Income Tax
Views : 131
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