Non-Service Tax Liability Amount Allowable as Expense U/S 37: ITAT Ahmedabad

Axis Bank Ltd. Vs ACIT (ITAT Ahmedabad) ITAT Ahmedabad held that service tax liability payable paid by Axis Bank not partake the character of service tax liability but is a ‘contractual agreement’ entered into between Max Life Insurance with a view to secure the business of Insurance Auxiliary Services from Max Life. Thus, allowable as expenditure u/s. 37 of the Income Tax Act. Facts- The assessee acts as a corporate agent for Max Life Insurance Company in respect of marketing it’s insurance policies. The assessee charges commission from Max Life in lieu of rendering such services. Durin...