This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Guarantee commission allowable as Revenue expense
Case Law Details
- Case Name
- Haryana State Road & Bridges Development Corporation Ltd. Vs Commissioner of Income Tax (Punjab and Haryana High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2010-11
- Courts
- All High Courts, Punjab and Haryana HC
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Advertisement
CA Saurabh Chokhra
Brief of the case:
The Hon’ble Punjab & Haryana HC in the above cited case held that guarantee commission by itself does not bring into existence any asset of an enduring nature. Therefore, guarantee commission is allowable as revenue expenditure.
Facts of the case:
During the course of assessment proceedings the AO found that assessee claimed an amount of Rs. 96.91 lacs as adeduction under Section 37 of the Act being the commission paidby it to the State of Haryana in respect of a guarantee issuedby the State of Haryanafor on its request in fav...
Author Info
