allowability 37(1) Archives

Loss for purpose prohibited or offence not deductible irrespective of legality of business

administrator April 25, 2023 Income Tax, Supreme Court

Loss incurred for any purpose which is an offence or which is prohibited by law is not deductible irrespective of legality or illegality of the business – Supreme Court ABCAUS Case Law Citation:ABCAUS 3717 (2023) (04) SC Important Case Laws relied upon:CIT vs. Piara Singh 124 ITR 41Haji …

Tax paid in foreign country is expenditure eligible for deduction u/s 37(1) of Income Tax Act – ITAT

administrator March 13, 2020 Income Tax, ITAT

Tax paid in foreign country not eligible for benefit u/s 91 is expenditure eligible for deduction under section 37(1) of the Act – ITAT ABCAUS Case Law CitationABCAUS 3289 (2020) (03) ITAT Important case law relied upon by the parties:Reliance Infrastructure Ltd versus CIT 390 ITR 271Hindustan Construction …

Repairs to preserve and maintain already existing asset eligible u/s 37(1) as revenue expenditure

administrator June 16, 2019 Income Tax, ITAT

Repairs to preserve and maintain already existing asset and to improve its longevity eligible eligible as current repairs ABCAUS Case Law Citation: ABCAUS 3015 (2019) (06) ITAT Important Case Laws Cited/relied upon by the parties: CIT vs. M/s MAC Charles (India) Ltd. CIT vs. TS Tech Sun India …

Disallowance u/s 37(1) for pan masala seized deleted following Supreme Court decision

administrator May 31, 2019 Income Tax, ITAT

Disallowance u/s 37(1) for pan masala seized deleted following SC decision that Explanation 1 apply to business expenses not to business losses ABCAUS Case Law Citation: ABCAUS 2979 (2019) (05) ITAT Important Case Laws Cited/relied upon by the parties: T.A. Quereshi Vs. CIT (2006) 286 ITR 547 The …

Disallowance u/s 37 for penalty/demurrage for late delivery of goods

administrator May 14, 2019 Income Tax, ITAT

Disallowance u/s 37 for penalty/demurrage for late delivery of goods not for any offence prohibited by law but merely normal business expenditure – ITAT ABCAUS Case Law Citation: ABCAUS 2924 (2019) (05) ITAT Important Case Laws Cited/relied upon by the parties Mahalakshmi Sugar Mills Co. Ltd. vs. CIT …

Allowability of penalty for redemption of confiscated goods violating import conditions – HC explains Law

administrator February 26, 2019 High Courts, Income Tax

Allowability u/s 37(1) of fine /penalty for redemption of goods ordered to be confiscated for breach of import conditions – High Court explains the Law ABCAUS Case Law Citation:ABCAUS 2801 (2019) (02) HC Important Case Laws Cited/relied upon by the parties CIT V/s. Ahmedabad Cotton Mfg. Co Ltd. …

Expenses that a lawyer can claim are entirely different from commercial entity

administrator January 11, 2019 Income Tax, ITAT

Kind of expenditure a legal professional can legitimately and justly claim is entirely different from basic expenditure a commercial entity can claim – SC dismisses SLP of the assessee ABCAUS Case Law Citation: ABCAUS 2713 (2019) (01) SC Important Case Laws Cited/relied upon: Shanti Bhushan v. Commissioner of …

ITAT explains the expression wholly and exclusively used in section 37 – ITAT

administrator November 7, 2018 Income Tax, ITAT

ITAT explain the expression wholly and exclusively used in section 37. ‘Wholly” relates to quantification and “exclusively” refers to the motive, objects and purpose of the expenditure. ABCAUS Case Law Citation: ABCAUS 2616 (2018) (11) ITAT The appellant assessee was in appeal before the Tribunal against order of …

Expenses on Business Management Course abroad for director’s son held as not incurred for business purpose

administrator July 14, 2018 High Courts, Income Tax

Expenses on Business Management Course abroad for directors son held as not incurred wholly and exclusively for the purpose of business of assessee ABCAUS Case Law Citation: ABCAUS 2417 (2018) 07 HC The instant appeal was filed by the appellant company against the order passed by the Income …

Deduction for Penal excise was allowed u/s 37 as it was paid to indemnify department for violating terms of affidavit

administrator February 25, 2018 High Courts, Income Tax, Judgments

Deduction for Penal excise was allowed u/s 37 as it was paid in discharging contractual obligation to indemnify department for violating terms of affidavit ABCAUS Case Law Citation: ABCAUS 2222 (2018) (02) HC The respondent assessee was engaged in the business of manufacturing and its sale. An intending …

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