ITAT upheld CIT(A)'s order, dismissing revenue's appeal ...

Brokerage Expenses Validated as Legitimate Business Costs Under IND AS-2, Supporting Normal Selling Operations and Income Generation

May 23, 2025

Case Laws Income Tax AT

ITAT upheld CIT(A)'s order, dismissing revenue's appeal regarding brokerage expenses. The tribunal found that brokerage expenses were legitimate business expenditures paid through banking channels, supported by invoices. The expenses were incurred as selling costs, consistent with IND AS-2, and could not be capitalized. The assessee's books were properly maintained and audited, demonstrating substantial income from business activities. The appellate tribunal concluded that the brokerage payments were normal selling expenses for a large-scale construction business, and therefore, the addition made by the Assessing Officer was unwarranted.

View Source

← Previous Next →

ITAT upheld CIT(A)'s order, dismissing revenue's appeal ...

Brokerage Expenses Validated as Legitimate Business Costs Under IND AS-2, Supporting Normal Selling Operations and Income Generation

May 23, 2025

Case Laws Income Tax AT

You may also like:

HC held that client assistant charges paid to ICICI Bank Ltd constitute legitimate business expenditure. The court rejected revenue's disallowance of expenses, finding...

The ITAT adjudicated multiple issues involving tax assessment for the assessee. Key determinations included: (1) upholding addition under Section 69C for undisclosed...

Allowable business expenses - There is difference between commencement of the business and setting off of the business. All the expenses incurred pre-commencement are to...

Computation of capital gains enshrined in section 48 - Deduction of Brokerage expense, Transfer expenses and indexed cost of improvement - Tribunal found the assessee...

Ad-hoc disallowances of the expenses - the expenses claimed for the purpose of the business cannot be disallowed merely on the reasoning that these expenses were...

Research and Development expenses (R&D Expenses) - Allowability of expenses u/s 35(2) - The expenses are not covered u/s 35(2) - The assessee has not claimed the same...

Transfer pricing issues: Royalty arrangement including trademark, know-how upheld based on CUP method over TNMM. Advertisement expenses remanded for fresh determination....

Valuation - Captive Consumption of goods by the sister concern - expenses to be included in the cost of production - Determination of Cost Plus 10% - Rule 8 - The issue...

Disallowance of expenses claimed by the assessee as business expenses - Addition made as assessee had no business - in a given situation where the issue of...

Valuation of services - Brokerage Charges - whether the brokerage charges paid to the brokers/distributors by the appellants are reimbursable expenses or whether is a...

The Appellate Tribunal considered the disallowance of club expenses to determine if they were incurred for business purposes. It held that the Assessing Officer's...

Denial of claim of loss or to categorize certain expenses as pre-operative expenses - commencement of business during the year - assessee’s business was ‘set up’ or not...

Disallowance of conveyance expenses, staff welfare expenses, sundry expenses and traveling expenses - certain expenses were not supported by third party vouchers,...

Disallowance of various expenses on ad hoc basis - While scrutinizing the expenditure if the expenses claimed are not having any nexus to the business of the assessee or...

ITAT upheld CIT(A)'s decision favoring the assessee on multiple disputed deductions. The City Environment Expenses were allowed as sunk costs incurred for development of...

Quick Updates: