Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
Specified income of Baddi Barotiwala Nalagarh Development Authority receives conditional tax exemption, retrospectively covering its designated assess...
Specified development authority income receives retrospective tax exemption, subject to non-commercial activity, unchanged income sources, and return-...
Unified Brand India framework introduces voluntary Trust Mark certification and funding support for export branding, packaging and global promotional ...
Origin Declaration authentication governs preferential tariff claims under India-UK CETA, requiring a validated reference number before import clearan...
Separate assessment orders for different years remain valid when distinct notices and hearing opportunities prevent prejudice from combined proceeding...
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.