Business Expenses under Income Tax

Here are the case Laws on allowed and not allowed Business Expenses under Income Tax

Business Expenses Allowed under Income Tax

Expenses on Repair & renovation of hotel allowed as Revenue Expenditure : HC

Expenses incurred on abandoned project was revenue expenses as no new Asset is created : MADRAS HC

Depreciation on Road constructed on BOT basis allowed as Intangible asset : ITAT

Depreciation allowed on landscape expenses on uneven leasehold land

Encashment of bank guarantee for non performance allowed as expenses. :ITAT Delhi

Expenses incurred to improve quality of existing product allowed : GUJARAT HC

Illegal business Loss is allowed as Business expenses

licence fee or privilege fee paid for Liquor lease is allowable Expenses

Free diaries, pen sets, calendars etc to Doctors by Pharma Co is allowable Expenses

Compensation paid for use of pirated software is not penalty, allowable Expenses u/s 37 of Income tax

Sales promotion Expenses by pharmaceutical companies allowed u/s 37 of income tax

Service Tax paid because Client refused to Pay ; Allowed Expenses under Section 37 of Income Tax

No disallowance of Expenses because benefit of research were not shown

Works contract tax deducted by clients is an allowable business expenses

CSR expenditure is allowable business expense : ITAT

Business Expenses Not Allowed under Income Tax

Exp. incurred on education of director’s son not allowed as Business Expense : BOMBAY HC

Expenses for property taxable as house property income couldn’t be allowed as business exp. : ITAT

Fine for Traffic Violation not allowed as Business Expenditure : ITAT

Expenses on eyes is not allowed as business expendtiure

Foreign travel expenses to reward doctors for patient referrals not allowed as business exp

Income Tax on business Income :Free Study Material