https://www.taxtmi.com/caselaws?id=415144 Guarantee commission paid by a State Government undertaking to the Government of Karnataka was analysed under section 40(a)(iib) of the Income-tax Act, 1961. The provision was held to apply only to royalty, licence fee, service fee, privilege fee, service charge or similar levies imposed exclusively on a State Government undertaking by the State Government. The commission here arose as contractual consideration for guarantees issued under the Karnataka Ceiling on Government Guarantees Act, 1999, not as a compulsory statutory levy, and it was not shown to be an exclusive charge on the assessee. The disallowance was therefore not sustainable. en-us Wed, 10 Nov 2021 00:00:00 +0530 Fri, 26 Nov 2021 13:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=415144 Guarantee commission paid by a State Government undertaking to the Government of Karnataka was analysed under section 40(a)(iib) of the Income-tax Act, 1961. The provision was held to apply only to royalty, licence fee, service fee, privilege fee, service charge or similar levies imposed exclusively on a State Government undertaking by the State Government. The commission here arose as contractual consideration for guarantees issued under the Karnataka Ceiling on Government Guarantees Act, 1999, not as a compulsory statutory levy, and it was not shown to be an exclusive charge on the assessee. The disallowance was therefore not sustainable. Case-Laws Income Tax Wed, 10 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=415144