Timing mismatch in income recognition requires verification whether receipts were already taxed in an earlier year; matter remitted for fresh examinat...
FOB transaction value and export incentives: customs valuation cannot override contractual export benefits or support confiscation without valid proof...
The ITAT held that settlement payment made under an invoked corporate guarantee was deductible as business expenditure because it arose from commercial expediency. It rejected the Revenue's challenge to the existence of the liability and to the claim that the amount was not incurred wholly and exclusively for business purposes, noting that the arbitration and execution proceedings had already proceeded on the basis of that guarantee. Applying the principle that tax authorities cannot sit in the businessman's armchair to judge commercial expediency, the Tribunal treated the payment as a business outgo and deleted the disallowance.
The ITAT held that settlement payment made under an invoked corporate guarantee was deductible as business expenditure because it arose from commercial expediency. It rejected the Revenue's challenge to the existence of the liability and to the claim that the amount was not incurred wholly and exclusively for business purposes, noting that the arbitration and execution proceedings had already proceeded on the basis of that guarantee. Applying the principle that tax authorities cannot sit in the businessman's armchair to judge commercial expediency, the Tribunal treated the payment as a business outgo and deleted the disallowance.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
