Guarantee commission allowable as Revenue expense

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.

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