Bombay HC allows Community Development as Business Expense

CIT-7 Vs Nicholas Piramal (India) Ltd. (Bombay High Court)

Bombay High Court, in CIT-7 v. Nicholas Piramal (India) Ltd., dismissed the Revenue’s appeal challenging the deduction of community development expenditure as a business expense. The case, pertaining to the assessment year 1998-99, revolved around whether expenses incurred for public welfare, such as streetlights, an ambulance, and a public garden, qualify as business expenses under the Income Tax Act, 1961. The Income Tax Appellate Tribunal (ITAT) had ruled in favor of Nicholas Piramal, following the precedent s

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