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The surcharge on sales tax and turnover tax is not a ‘fee or charge’ coming within the scope of Section 40 (a) (iib) and is not an amount which can be disallowed under the said provision. Therefore the disallowance made in this regard is liable to be set aside.

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Sec.  40 (a) (iib) of Income Tax Act, 1961—Business Disallowance —KERALA STATE BEVERAGES vs. ASSTT. CIT.[2020] 24 ITCD Online 027 (KER)

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