Addition of amounts written off - payment of service tax to its ...

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

September 22, 2023

Case Laws     Income Tax     AT

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

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