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2015 (5) TMI 1183 - ITAT BANGALOREPayment as“speed money” - Payment made to labourers at MPT - addition u/s 37(1) - assessee is a company engaged in the business of acting as clearing and forwarding agents mainly in the Mangalore Port Trust (MPT). - assessee has to pay the charges to MPT only towards wages payable to workers, who in turn pay the same to the workers. Apart from the payment made to Port authorities, the assessee also pays wages directly to workers - AO disallowed 20% of the expenditure - HELD THAT:- As decided in assessee's own case for A.Y. 2009-10 relying on KONKAN MARINE AGENCIES [2008 (7) TMI 362 - KARNATAKA HIGH COURT] considering the assessee's business and the prevailing practice in the trade, whereby payments had to be made by firms like the assessee in order to ensure that the work of handling goods was done within reasonable time and emergency operations of cargo handling were done beyond working hours, such payments were made either through labour or workers union. It could not be considered to be prohibited by law. The assessee could not be expected to take receipts from individual workers or make payment by way of cheques. The payment was made by the assessee for business purposes and the expenditure had been incurred in the ordinary course of business. Therefore, the deduction was allowable by way of business expenditure - Decided in favour of assessee.
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