M/s. Merilyn Shipping & Transports vs. ACIT (ITAT Visakhapatnam Special Bench) The assessee incurred brokerage expenses of Rs.38.75 lakhs and commission of Rs.2.43 lakhs without deducting TDS. Of this only Rs. 1.78 lakhs was payable and the rest was paid. The AO disallowed the entire expenditure u/s 40(a)(ia). Before the CIT (A), it was argued that disallowance u/s 40(a)(ia) could be made only of the amount “payable” and not of that which had already been “paid” though it was rejected. On appeal to the Tribunal, the matter was referred to the Special Bench. HELD by the Special Bench:
Daily Archives: April 16, 2012
Maral Overseas Ltd. v ACIT [2012] 20 taxmann.com 346 (Indore – Trib.)(SB) Deduction under section 10B not deniable merely because assessee was only granted certificate for enhanced capacity by way of amendment of original certificate and not a fresh sanction letter in form of certificate.