Held that\u00a0 the assessee could not be penalised for the failure, if any, of the recipients. If the recipients of professional fees are able to arrange loan funds for the assessee, then a businessman would necessarily pay fees. The loan of Rs. 43 crores was obtained by the assessee from PNB and the professional fees had been paid for negotiating the loan. Therefore, the Assessing Officer, is\u00a0 not justified in disallowing the claim of payment of professional fees, when the payment was through banking channel and tax is\u00a0 deducted\u00a0 at source merely because the recipient has not filed the return of income.\u00a0\u00a0 (AY.2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Professional fees-Negotiating debt funding-Tax deducted-Payment through banking channels-, Recipients did not file return is not sufficient to disallow payment <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-52454","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dE2","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=52454"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52454\/revisions"}],"predecessor-version":[{"id":52455,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52454\/revisions\/52455"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}