Disallowance u/s. 40A(2) - addition being 50% of the total back ...

Tribunal Overturns Arbitrary Disallowance of 50% Back Office Charges, Citing Acknowledged Benefits to Assessee.

February 10, 2024

Case Laws Income Tax AT

Disallowance u/s. 40A(2) - addition being 50% of the total back office charges paid to group consultant - The Tribunal held that, AO has observed that the assessee may have benefitted from the bulk or centralized purchasing done though to group consultant but it does not justify the entire payment. Once it is accepted by the AO that the assessee is benefited through to group consultant , no adhoc disallowance is called for - we delete the disallowance u/s. 40A(2) of the Act.

View Source

← Previous Next →

Disallowance u/s. 40A(2) - addition being 50% of the total back ...

Tribunal Overturns Arbitrary Disallowance of 50% Back Office Charges, Citing Acknowledged Benefits to Assessee.

February 10, 2024

Case Laws Income Tax AT

You may also like:

Levy of interest u/s 50(3) - Wrong availment of Input of Tax Credit and reversal thereof - The court noted that the issue of levying interest under Section 50(3) of the...

Penalty u/s 271(1)(c) - The Appellate Tribunal observed that the appellant, during reassessment proceedings, had filed their return of income but failed to provide...

Disallowance for prepaid finance charges was deleted as the Tribunal in the assessee's own case for the previous year had allowed deduction for finance charges including...

The Appellate Tribunal held in favor of the assessee regarding addition towards prior period expenses, citing consistency in previous rulings and emphasizing the...

TP Adjustment - assessee has issued the corporate guarantee on behalf of AE’s - interest saved approach - The ITAT decided in favor of the assessee, directing the AO to...

Demand of Interest on 50% of the service tax - when the service provider (appellant) has paid entire 50% of the amount towards service tax and the service Recipient also...

HC considered a case u/s 50 of Black Money Act for non-disclosure of foreign assets and false statements by petitioners, office bearers of British Companies. Act...

Depreciation on glow sign boards and oxygen gas cylinders was rejected by the Assessing Officer, holding that the transaction on the last day of the accounting year...

Instructions for back office processing of online GST Refund applications - SGST

Disallowance of renovation expenses of office on rented premises - Once 50 per cent. of the expenditure has been disallowed as capital expenditure, we do not find any...

Addition towards office rent and office maintenance charges - apportionment of expenses to the sister concerns and group companies - When all the assessee's sister...

The Appellate Tribunal addressed three main issues raised by the Assessee against the assessment order. Firstly, regarding the disallowance of job work charges to a...

Valuation of imported goods - Cement Carrier ship - The Tribunal accepted the value assessed by the Chartered Engineer at Rs. 27 Crores, overturning the adjudicating...

Construction of residential complex - It appeared to Revenue that the appellant is also collecting one time Preferential Location Charges, Car Parking Charges, Club...

Levy of GST - whether the stand to charge the GST@18% only on establishment charges (i.e. after abatement of wages etc. paid to guards) and not on whole amount - the...

Quick Updates: