Company's Service Tax Reimbursement to Distributors Deemed Valid Business Expense by Tax Appeals Commissioner.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Addition of amounts written off - payment of service tax to its distributors - when the assessee company has paid amount to its distributors who had actually paid the service tax amount to the exchequer is a kind of adhoc reimbursement of expenditure or liability of service tax. - Such amount was write off by the assessee - CIT(A) was right in concluding that the payment was made by the appellant are directly related to the business activity of the assessee - claim cannot be denied - AT....