Guarantee Commission is not a ‘Levy’ for Disallowance u/s 40(a)(iib): ITAT

Krishna Bhagya Jala Nigam Limited Vs ACIT (ITAT Bangalore) Guarantee commission not ‘Levy’ for the purposes of disallowance under Section 40(a)(iib) of the IT Act ITAT held that guarantee commission paid in consideration for the state government agreeing to suffer a detriment in the event of non-payment of the bonds on its maturity and is merely a contractual payment and not levy. M/s. Krishna Bhagya Jala Nigam Ltd (Appellant) challenged an Assessment Order dated September 29, 2018 (Assessment Order) passed by the Assessing Officer (AO), disallowing the guarantee commission under Section ...