Increase in cost of materials consumed due to higher exchange ...

Forex rate change impacts material cost, commission expenses rise; reasonable explanations given.

Case Laws Income Tax

September 7, 2024

Increase in cost of materials consumed due to higher exchange rate for purchases compared to previous year. Adequate explanation provided by assessee regarding increase in ratio of material cost to revenue, overall profitability improvement, and forex rate change details. Ad-hoc addition without examining assessee's submissions cannot be made. Commission expenses increased, assessee provided reasons. Ad-hoc disallowance without finding defects in submissions impermissible. Disallowance u/s 40(a)(ia) incorrect as commission paid to residents, not non-residents. Assessee offered 30% disallowance for non-deduction in return. CIT(A)'s order deleting additions upheld by ITAT.

View Source

← Previous Next →

Increase in cost of materials consumed due to higher exchange ...

Forex rate change impacts material cost, commission expenses rise; reasonable explanations given.

Case Laws Income Tax

September 7, 2024

You may also like:

Disallowance of commission paid - excessive expense on commission - the average rate of commission paid by the assessee to others in respect of rice was 20, but rate of...

Valuation - Captive Consumption of goods by the sister concern - expenses to be included in the cost of production - Determination of Cost Plus 10% - Rule 8 - The issue...

All the four items, namely - Custom duty/expenses on importing of free samples; Consultancy charges; Cost of material used for in-house development transferred from Raw...

Rate of commission on accommodation entries - CIT(A) has applied correct estimate of rate of commission income @2% which is reasonable and appropriate - AT

The ITAT held that disallowance of advertisement expenses lacked merit as the charges were reasonable. The 15% discount received by the agent did not impact the...

Valuation - inclusion cost of material / reimbursement of expenses - where the value of materials and cost of execution of work for installation of electric lines are...

The circular addresses the disclosure requirements for Foreign Portfolio Investors (FPIs) regarding material changes and obligations. Amendments to SEBI regulations...

Estimation of rate of commission earned on the accommodation cheques - estimation of commission @3% on cheque amount and 20% on expenditure will be fair and reasonable - AT

TDS u/s 194D - ceading commission - soliciting or procuring insurance business - As per the facts of the present case, the cedant commission paid by the assessee to the...

Addition under the head of Vehicle Running Expenses and Repairs & Maintenance - "exaggerated expense' or "not reasonable expense". - The onus is on the Revenue to...

Rate of GST - old rates of GST or new rates - ongoing projects construction of which had started before 01.04.2019 - definition of ‘affordable residential apartment’ has...

Disallowance of commission expenses - income from providing accommodation entries - Weightage rate of commission - the objections of the assessee that commission...

TP adjustment - foreign exchange loss - part of operating expenses or not - Sales and forex losses incurred by the assessee are closely interlinked for this reason....

Disallowance on account of depreciation claimed on the cost incurred in relation to the land being non depreciable asset - To our understanding, the impugned expenses...

LTCG - Deduction u/s 54 - Adoption of the cost of acquisition of new asset - - what is to be treated as cost of the residential house is the entire cost of house and it...

Quick Updates: