No 14A Disallowance Without Satisfaction, No Penalty on Debatable Issues

Karnataka State Beverages Corporation Limited Vs ACIT (ITAT Bangalore) No 14A Disallowance Without Satisfaction, No Penalty on Debatable Issues In a significant ruling involving Karnataka State Beverages Corporation Ltd. (KSBCL), the Bangalore ITAT granted substantial relief by deleting both the Section 14A disallowance and the related Section 271(1)(c) penalty, while also allowing deduction for provision made towards employee ex gratia payments. For AY 2011-12, the Tribunal held that the provision of ₹37.53 lakh towards ex gratia payment to employees was an ascertained liability and not a c...