ITAT adjudicated two key tax issues involving a State Government ...

State Govt Undertaking Faces Tax Scrutiny: Guarantee Commission Disallowed and Debt Provisions Remanded for Detailed Review

May 17, 2025

Case Laws Income Tax AT

ITAT adjudicated two key tax issues involving a State Government undertaking. First, the tribunal upheld disallowance of guarantee commission paid to Kerala State Government under section 40(a)(iib), aligning with Supreme Court precedent that fees paid by State Government undertakings are non-deductible. Second, regarding provision for bad and doubtful debts, the tribunal remanded the matter to the Assessing Officer for reconsideration, directing a detailed examination of debt write-offs consistent with Supreme Court guidelines in Vijaya Bank case. The first ground was dismissed, while the second ground was partly allowed for statistical purposes, mandating a fresh assessment of deductibility criteria.

View Source

← Previous Next →

ITAT adjudicated two key tax issues involving a State Government ...

State Govt Undertaking Faces Tax Scrutiny: Guarantee Commission Disallowed and Debt Provisions Remanded for Detailed Review

May 17, 2025

Case Laws Income Tax AT

You may also like:

Deduction u/s 37 - Guarantee commission paid to State Government – allowed as revenue expenditure - HC

Demand of service tax on guarantee commission under reverse charge mechanism - the appellant is liable to discharge service tax on the Guarantee commission paid to...

Disallowance u/s 40A(3) was challenged regarding cash payments made towards godown rent and electricity charges to a State Government undertaking. Applying the tests...

Transfer pricing adjustment towards notional guarantee commission chargeable for the guarantee extended to its associated enterprises - commission chargeable for...

Guarantee commission paid to the Directors of the Company – whole of the guarantee commission shall be allowed - AT

Procedures for bank guarantees and customs bonds under Indian customs law, detailing obligations for importers/exporters (obligors) and banks. Key provisions include:...

The case pertains to the scope of limited scrutiny by the assessing officer regarding computation of capital gains u/s 45 and providing exemption u/s 54B of the Income...

Registration u/s 12AA - education and advancement of general public utility - Object of general public utility is wider and larger object which encompasses the object...

Transfer pricing adjustment – Guarantee charges for guarantee to AE – no upward adjustment in the ALP in relation to charging of guarantee commission over and above...

Penalty levied u/s 274 read with Section 270A - assessee computed tax on disallowed depreciation amount at maximum marginal rate and levied 200% penalty on payable tax -...

This case discusses various issues related to the income tax assessment of a bank. The key points are: Disallowance of expenditure incurred for reservation of seats in...

The ITAT, an Appellate Tribunal, considered a case involving the revision u/s 263 for non-deduction of tax at source on salary and commission payments. The CIT argued...

Additions beyond the scope of limited scrutiny assessment - Conversions of Limited Scrutiny to Extensive Scrutiny - no steps has been taken to convert the limited...

Demand of service tax - providing services without consideration (free) to its associate companies - activity of giving corporate guarantee - The Show Cause Notice...

The GST Council approved formation of a GoM on restructuring Compensation Cess to examine revenue impacts on states post-GST implementation. Key points: Karnataka raised...

Quick Updates: