Tag: disallowance u/s 37(1)

Onus lies on assessee to prove amount received from clients towards expenses were actually expended for the purpose intended. In a recent judgment, the ITAT Delhi has upheld that for amount received from clients towards expenses reimbursement, onus lies on assessee to prove that the expenses were wholly …

Advance given for purchase and subsequently written off in Profit and Loss account as bad debts allowed as business expenditure u/s 37(1) In a recent judgment, ITAT Chandigarh allowed deduction under section 37(1) as business expenditure towards advance written off as irrecoverable bad debts, following the Supreme Court …

Addition deleted for contingent liability stated in tax audit report but which was not debited to the P&L Account In a recent judgment, ITAT Kolkata upheld the order of CIT(A) deleting the addition made by CPC for contingent liability stated in tax audit report but which was not …

Pooja Expenses incurred allowable business expenditure under section 37 of the Income Tax Act, 1961 – ITAT  In a recent judgment, ITAT Nagpur has held that Pooja Expenses incurred were allowable business expenditure under section 37 of the Income Tax Act, 1961. ABCAUS Case Law Citation:4311 (2024) (11) …

Commercial expediency – Expression “for the purposes of the business” is wider than “for the purpose of earning profits” – ITAT In a recent judgment, Ahmedabad ITAT has allowed an expenses u/s 37(1) considering Commercial expediency holding that the expression given in section 37 “for the purposes of …

Late fee on TDS payments and payment of interest on GST is allowable expenditure u/s 37 of the Income Tax Act – ITAT  In a recent judgment, the ITAT Chennai has held that late fee paid on TDS payments and interest on late payment of GST is allowable …

CSR Expenses though not allowed u/s 37 however allowable deduction u/s 80G of the Income Tax Act 1961 – ITAT In a recent judgment, the ITAT Rajkot has held that CSR Expenses, even though not allowed u/s 37 of the Income Tax Act, however, the CSR expenditure is …

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 …

Disallowance of Interest on TDS u/s 37(1) is outside the purview of Section 143(1). ITAT allows interest as business expenditure ABCAUS Case Law Citation:ABCAUS 3712 (2023) (04) ITAT Important Case Laws relied upon :M/s. Hebe Infrastructure Pvt. Ltd.M/s. Govindam Clearing Agencies Pvt. Ltd. Vs. DCITDCIT vs.  M/s Narayani …

Harish Salve gets relief from ITAT. Funding education of Indian law students abroad allowed as business expenditure u/s 37(1) as goodwill measure  ABCAUS Case Law CitationABCAUS 3462 (2021) (03) ITAT In the instant case, the assessee had challenged the order passed by the CIT(A) in confirming disallowance of …