Examine with reasons, the allowability of the following expenses incurred by Anand, a wholesale dealer of commodities, under the Income Tax Act, 1961 while computing profit and gains from business or profession for the A

(ii) Commodities transaction tax of ₹20,000 paid on sale of bullion: As per provision of section 36(1)(xvi) along with section 43B of the Income tax Act, 1961, Commodities transaction tax paid in respect of taxable commodities transactions entered into in the course of business during the previous year is allowable as deduction, provided the income arising from such taxable commodities transactions is included in the income computed under the head "Profit and gains from business or profession". Assuming that the income from these commodities transactions is included while computing the business income of Mr. Anand, the commodity transaction tax of ₹20,000 paid is allowable as deduction under section 36 (1) (xvi) of the Income tax Act, 1961.