Applicability of Section 40(b) ::

Last updated: 05 September 2007

Court :
Tribunal

Brief :
Discounts are given for business exigencies to everyone and as such discounts are neither salary nor commission, provisions of section 40(b) are not applicable to such discounts.

Citation :
I.T.O. Vs. Dhiman Systems

Applicability of Section 40(b) I.T.O. Vs. Dhiman Systems 12/29/2004 IT Appeal No. 52(ASR) of 2001 Case Fact: Whether provisions of section 40(b) are applicable to discounts on purchases given to partners where such discounts are given to all purchasers. Decision: Held that as discounts are given for business exigencies to everyone and as such discounts are neither salary nor commission, provisions of section 40(b) are not applicable to such discounts.