The Tax Publishers2020 TaxPub(DT) 3916 (Guj-HC)

INCOME TAX ACT, 1961

Section 40A(3) Rule 6DD(b)

Where disallowance was made under section 40A(3) for cash payment made on account of legal expenses to solicitor, Tribunal was justified in deleting disallowance by holding that payments were covered by rule 6DD(b).

Business disallowance under section 40A(3) - Amount paid in cash for legal expenses to solicitor - Payments covered by rule 6DD(b) -

Issue was as regards disallowance made under section 40A(3) of amount paid in cash for legal expenses to solicitor. Revenue challenged order of Tribunal holding that payments were covered by rule 6DD(b) although payments were made by assessee to solicitor and not to Government. Held: Though substantial questions of law were raised, all questions of law were related to payment made in cash to Solicitor by assessee. Considering the concurrent findings, Court did not find that Tribunal erred in law and on facts in confirming the decision of CIT(A) deleting the disallowance made under section 40A(3).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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