Tag: disallowance u/s 37(1)

Penalty levied for late supply of goods is an allowable deduction u/s 37 as late supply neither a crime nor a prohibited activity – ITAT In a recent judgment, ITAT Delhi has deleted addition made u/s 37 of Income Tax Act on account of penalty due to late …

Expenses incurred on ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act – ITAT Delhi In a recent judgment, ITAT Delhi has held that expenses of ESOP is considered as allowable u/s 37(1) of the Act and mere admission of SLP before Supreme Court would …

Payment made by the assessee as non-compete fee was an allowable revenue expenditure under Section 37(1) of the Act –Supreme Court In a recent judgment, Hon’ble Supreme Court has held that non-compete fee payment made to essentially keep a potential competitor out of the same business cannot be …

Mining done without environmental clearances or beyond the quantity prescribed in Environment clearance or approved mining plan not illegal mining In a recent judgment, the Orissa High Court upheld quashing of reassessment holding that mining done without environmental clearances or beyond the quantity prescribed in the Environment clearance …

ITAT confirms disallowance u/s 37(1) interest on delayed payment of services tax, TDS, late fees on delay in filing of TDS returns In a recent judgment, ITAT Allahabad upheld disallowance u/s 37(1) on account of interest paid on delay in payment of services tax, interest paid on delay …

Interest paid on delayed payment of GST/VAT is compensatory and not penal in nature for allowability under section 37. In a recent judgment, ITAT Delhi has held that interest paid on delayed remittance of GST / VAT is compensatory and not penal in nature for the purpose of …

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) …