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Commission paid to related parties for services rendered by them is allowable expenditure
Case Law Details
- Case Name
- Commissioner of Income Tax- III Vs Naval Technoplash Industries Ltd (Gujarat High Court at Ahmedabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Gujarat High Court
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Question No.(i) pertains to addition of Rs.33.33 lakhs (rounded off) made by the Assessing Officer towards the commission paid to related parties. The Assessing Officer made such addition despite the assessee pointing out that the parties to whom such commissions were paid were associated with the associated company since its inception. The commission was paid for the services rendered by them for promoting sales. Such commission agents were assessed to income tax, TDS whenever required to be deducted had been deducted.
The assessee thereupon approached the CIT (Appeals) who ...
