Tag Archives: Section 37(1)

CSR expenditure is allowable business expense : ITAT

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR Assistant Commissioner of Income Tax Circle 1(1), Bilaspur ………….…………….Appellant Vs. Jindal Power Limited ……..….…….…Respondent Tanmar, Raigarh 496 107 I.T.A. No.99/BLPR/2012 Assessment year: 2008-09 S. 37(1): Expenditure on Corporate Social Responsibility (CSR), though voluntary, is allowable as business expenditure. Explanation 2 to s. 37(1) inserted w.e.f. 01.04.2015… Read More »

Foreign Exchange Loss is allowable expense under Section 37(1): SC

Section 37(1), read with section 145, of the Income-tax Act, 1961  Subject : Allowability of Business expenditure  Assessment year: 1998-99  Whether expression ‘expenditure’ as used in section 37 may, in circumstances of a particular case, cover an amount which is really a ‘loss’, even though said amount has not gone out from pocket of assessee ?… Read More »

Subscription fee of golf club paid by Company for director and his family was not allowable expense

During year, assessee company paid subscription fee for membership of director and his family members to a golf club and claimed deduction of same as revenue expenditure . Assessing Officer treated expenditure as personal expenditure of director and disallowed same Held :- subscription fee paid on behalf of director could not be allowed as expenditure… Read More »

Amount paid for construction of railway underbridge for access to projects of assessee was revenue exp

Where an area development authority, made payment to Railway for construction of railway underbridge to overcome traffic problem and for creating access of projects undertaken by it, said expenditure was to be allowed as deduction under section 37(1) IN THE ITAT CHANDIGARH BENCH ‘A’ Greater Ludhiana Area Development Authority v. Additional Commissioner of Income-tax BHAVNESH… Read More »

Compounding fee is penalty hence Disallowed

Q; Whether Compounding fee is penalty and therefore not allowed as business expenditure ? Compounding fee paid by assessee, a land developer to Municipal Corporation on account of deviations from original sanctioned plan was in nature of penalty and therefore would not be allowable as deduction in view of provisions of Explanation to section 37(1) IN… Read More »

Preoperative expenses are Revenue expenses if

  Question : Whether the Preoperative Expenses are Revenue expenses if company expanded its existing business?   Answer : Where assessee company expanded its existing business and claimed said expenses as pre-capitalisation cost, same was to be treated as revenue expenditure HIGH COURT OF DELHI Commissioner of Income-tax v. SRF Ltd. S. RAVINDRA BHAT AND R.… Read More »