https://www.taxtmi.com/caselaws?id=404516 The Tribunal upheld the disallowance of Rs. 56.61 Lacs as compensatory interest under section 40(a)(ia) for cancellation payments in the case concerning Assessment Year 2015-16. The matter was remanded to the Assessing Officer to confirm if payees declared income, as per statutory provisions, and the appeal was partly allowed for statistical purposes. The judgment highlights the differentiation between compensatory payments and interest, stressing the legal obligations post-transaction cancellation and the necessity of tax compliance by payees to prevent disallowances under tax laws. en-us Mon, 25 Jan 2021 00:00:00 +0530 Thu, 25 Feb 2021 10:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404516 The Tribunal upheld the disallowance of Rs. 56.61 Lacs as compensatory interest under section 40(a)(ia) for cancellation payments in the case concerning Assessment Year 2015-16. The matter was remanded to the Assessing Officer to confirm if payees declared income, as per statutory provisions, and the appeal was partly allowed for statistical purposes. The judgment highlights the differentiation between compensatory payments and interest, stressing the legal obligations post-transaction cancellation and the necessity of tax compliance by payees to prevent disallowances under tax laws. Case-Laws Income Tax Mon, 25 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404516