Tax Victory: M&M’s Subsidiary Bailout Expenses Gets Green Light from Bombay HC

Mahindra & Mahindra Ltd Vs CIT (Bombay High Court) Overview: The Bombay High Court allowed M&M’s appeal, overturning the ITAT’s decision on all three substantial questions of law. The Court held that the expenditure and write-offs related to MMC were allowable deductions under Sections 28 and 37 of the Income Tax Act, as they were incurred for commercial expediency and to protect M&M’s business reputation. The Court relied on its previous judgment in M&M’s own case for the preceding assessment year, which had been accepted by the revenue. On the Section...