Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 773 - AT - Income TaxDisallowance u/s 40(a)(ia) - bank guarantee commission paid to a schedule Indian bank - HELD THAT:- Admittedly, the payment which is the subject matter of disallowance under Section 40(a)(ia) of the Act is bank guarantee commission paid to a schedule Indian bank. As rightly held by learned Commissioner (Appeals) by placing reliance on certain judicial precedents, there is no element of agency between the assessee and the bank, insofar as, it relates to payment of guarantee commission. We are also of the view that learned Commissioner (Appeals) has correctly applied the extant Circular of CBDT as it is clarificatory in nature. In view of the aforesaid, we uphold the decision of learned Commissioner (Appeals) by dismissing the grounds raised.
|