Case Law Details
Loesche India Pvt. Ltd. Vs. Addl. CIT (ITAT Delhi)
Loesche India case: it is not necessary that all the payments/expenditure incurred by the assessee should have direct bearing on earning of income, but some payments are also made under certain business expediency
Recently, in Loesche India Pvt. Ltd. vs. Addl. CIT [ITA No. 295/Del/2016 AY: 2010-11, decided on 13.08.2018], appeal was filed by the assessee against the order of the CIT(A)-V, Delhi dated 27.11.2015 for the AY 2010-11 in which one of the ground raised was that the CIT (A) has erred on facts and in law in sustaining the disallowance of Rs. 1,205,531 made by the assessing officer in relation to medical insurance premium paid for the family members of the employees of the company on the ground that such expenditure, though incurred in terms of contractual obligations entered into with the employees, cannot be stated to have been incurred wholly and exclusively for the purposes of business of the assessee.
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