Disallowing the challan paid in the name of one employee & ...

Court Upholds Disallowance of License Fee Expense for Dummy Bidder in Liquor Business; Violates Excise Rules.

August 30, 2022

Case Laws     Income Tax     AT

Disallowing the challan paid in the name of one employee & disallowing the subvend fee paid - CIT-A deleted the addition - as submitted assessee has obtained liquor vend under reserve quota through his employee who was used as dummy bidder and the entire purchases and sale and expenditure was incurred by the assessee - Since the said model of business itself is in violation of licenses issued by the Excise Department, the license fee paid by the assessee who is not the license holder cannot be treated as eligible expenses - Revenue appeal allowed - AT

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