Charitable trust registration requires a specified-violation notice; settled cash deposits and related-party payments did not justify cancellation or ...
External development charges trigger TDS under section 194C, while disputed administrative payments require factual verification and fresh adjudicatio...
Section 270AA penalty immunity requires identified statutory defaults and a hearing before rejection; reassessment disclosure may constitute under-rep...
Section 80JJAA employee-cost deduction allowed for deployed staff but barred against transfer-pricing income enhancement, with pricing issues remanded...
Transfer-pricing methodology protects commercially genuine associated-enterprise payments, while pre-2016 secondary adjustments and related notional i...
Negative liens over operating assets can constitute international transactions requiring arm's-length pricing reflecting restricted borrowing and expa...
Cross-examination rights in Customs Broker revocation inquiries require witness examination; procedural denial may be cured through fresh adjudication...
ITAT held that commission paid for procuring bonds in a one-time...
Business expenditure disallowance failed where commission, related-party salary and promotion payments were supported by records and inquiry was inadequate.
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
ITAT held that commission paid for procuring bonds in a one-time trading transaction was allowable as business expenditure where payments were made through banking channels with TDS, confirmations, PAN and bank details, and the underlying bond deal was not disputed; suspicion based on non-response of some parties or missing unspecified KYC material was insufficient, so the ad hoc disallowance was deleted. It also deleted disallowance of salary paid to a related party because no specific inquiry was made into the employee's qualifications, experience or work profile, and there was no finding of excessiveness. Business promotion expenditure paid to two HUFs was similarly allowed because invoices, bank payment and identity documents were on record, while the claim relating to Planwell Industries Corporation was not pressed.
ITAT held that commission paid for procuring bonds in a one-time trading transaction was allowable as business expenditure where payments were made through banking channels with TDS, confirmations, PAN and bank details, and the underlying bond deal was not disputed; suspicion based on non-response of some parties or missing unspecified KYC material was insufficient, so the ad hoc disallowance was deleted. It also deleted disallowance of salary paid to a related party because no specific inquiry was made into the employee's qualifications, experience or work profile, and there was no finding of excessiveness. Business promotion expenditure paid to two HUFs was similarly allowed because invoices, bank payment and identity documents were on record, while the claim relating to Planwell Industries Corporation was not pressed.
Note: It is a system-generated summary and is for quick reference only.