Contribution by CA firm towards ICAI building is allowable expenditure

Brief– By donating the amount, the firm had been able to attract good Articled Clerks and other professional persons who are the backbone of any professional practice. Thus there was a good professional reason for the firm to contribute to the building fund of the Branch of the ICAI. The said payment satisfies the commercial expediency test as the contribution had a direct nexus with the carrying on of the profession by the firm. Further, if the claim was allowable under section 37(1) itself there was no case for proceeding to section 80G which applies to all assessee’s whether or not ...