Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (11) TMI 797 - HC - Income TaxRoyalty - Additions under s. 40A{3) of the IT Act - assessee was a contractor and collecting the royalty and payment had been made to the contractor who had collected the royalty on behalf of the State - AO disallowed 20 per cent of the amount as the payment exceeded Rs. 20,000 – Held that:- Amount was paid to the contractor which was collected on behalf of the State Government as such no disallowance could have been made in view of r. 6DD(b). The Government has granted contract to collect the royalty to the contractor. The payment was made to the contractor not in individual capacity, but on behalf of the Government of Rajasthan, hence, no disallowance under r. 6DD(b) could have been made, CIT(A) and Tribunal have not committed any illegality in passing the orders, no substantial question arises in the instant appeal. Consequently, the income-tax appeal is hereby dismissed
|