Facts of the case The assessee claimed an amount of Rs. 2,24,204/- as foreign traveling expenses in respect of its Directors’ wives who traveled with the Directors while they were on business tours. The Assessing Officer noted that the assessee had given a note in the auditors report that this expenditure was incurred under the… Read More »
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 »
Issue Whether the expenditure of Rs. 43,600/- on medical treatment of eyes for improving the vision has an element of personal expenditure, and accordingly the expenditure incurred by the appellant on foreign tour for pre- operation investigation relating to his eyes cannot be allowed as business expenditure u/s 37 (1) ? Assessee plead It is… Read More »
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 »
Expenditure incurred by car-manufacturer on gifts of cars to State police department was held not an eligible expenditure under section 37(1) as it was found not incidental to carrying on business and there was no commercial expediency in incurring this expenditure IN THE ITAT CHENNAI BENCH ‘B’ (THIRD MEMBER) Hyundai Motor India Ltd. v. Deputy… Read More »
In case of assessee, engaged in business of manufacture and sale of India Made Foreign Liquor (IMFL), provision made for transit breakage was to be regarded as liability of contingent nature and as such was not an allowable deduction under section 37(1) HIGH COURT OF DELHI Seagram Distilleries (P.) Ltd. v. Commissioner of Income-tax-III, New… Read More »
Whether amount of works contract tax, deducted by various clients of assessee company while making payments to it, was an allowable business expenditure under section 37(1) even though assessee was not able to claim refund of it from respective State Sales Tax Departments ? Held Yes IN THE ITAT BANGALORE BENCH ‘A’ Tellabs India (P.)… Read More »
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 »
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 »
Expenses for Removal of illegal encroachments Q Whether expenditure to be incurred in removal of encroachments in and around the technical area of the Airport which was necessitated out of safety and security consideration in the normal course of business of authority enjoined with the responsibilities of maintenance and operation of airports all over India is… Read More »