Income Tax - According to Section 37 of the Income Tax Act, 1961, any expenditure not being the expenditure allowed under Sections 30 to 36 and not of capital or personal nature and which are expended exclusively for the purposes of the business or profession are allowed while computing the income from business or profession. Conditions laid out [&hel...
Read MoreIncome Tax - We know that there are five heads of income, in which income of any assessee has been taxed. There may be different types of income an assessee earned during previous year such as income from salary, House Property, Profit and gain from business or profession, Capital Gain and Income from other sources. Section 28 is […]...
Read MoreIncome Tax - The provisions of the Income-tax Act relating to allowances disclose that the expenditure or outgoing sought to be deducted should bear a character which has a connection with or relation to the particular activity which produces the income or constitutes its source....
Read MoreIncome Tax - CA Susheel Kumar Gupta Section 30 to 36 lists out certain deductions, which are allowed while computing the profit and gains from business or profession. Deductions under these sections are allowed subject to certain conditions mentioned in those section. Further, these sections do not list down all types of expenses. For these expenses, ...
Read MoreIncome Tax - Condition for allowance under section 37 - Such expenditure should not be covered under the specific section i.e. sections 30 to 36. Expenditure should not be of capital nature. The expenditure should be incurred during the previous year. The expenditure should not be of personal nature. The expenditure should have been incurred wholly ...
Read MoreIncome Tax - Allowability of Interest paid under Incometax Act, 1961: Presently, interest paid by the Government to an assessee is chargeable to tax. However, interest paid by the assessee to the Government under various sections is not allowed as deduction while computing the total income. Interest paid by the assessee is for the use of money by [&he...
Read MoreAllu Arvind Babu Vs ACIT (Madras High Court) - Allu Arvind Babu Vs ACIT (Madras High Court) The claim of creation of provision for such expenditure, which is not yet incurred and is only intended to be written off as compensation paid to the land owner for the admitted failure of the Assessee to complete the contract in the manner as agreed betw...
Read MoreGarden Reach Ship Builders & Engineers Ltd. Vs PCIT (ITAT Kolkata) - The amendment brought about by way of Explanation 2 to section 37 by Finance Act, 2014, was only with effect from 01.04.2015. ITAT held that the amendment in question is not retrospective. Expenditure incurred in CSR in accordance with guidelines issued by the Govt. of India is allowable as a deduc...
Read MoreDCIT Vs. Coffee Day Global Ltd. (ITAT Bangalore) - DCIT Vs. Coffee Day Global Ltd. (ITAT Bangalore) The issue under consideration is whether foreign exchange fluctuations are allowed as revenue expense u/s 37 of Income Tax Act? ITAT states that, the Supreme Court in the case of CIT vs. Woodward Governor India Pvt. Ltd. (2009) 312 ITR 254 had already...
Read MorePharmabase India P. Ltd. V DCIT. (ITAT Mumbai) - Whether CIT(A) was justified in confirming the disallowance of foreign exchange fluctuation loss arising out of re-statement of External Commercial Borrowings (ECB) at the year end rates in accordance with AS-11?...
Read MoreSaregama India Ltd. Vs DCIT (ITAT Kolkata) - The issue under consideration is whether payment of minimum guarantee royalty for purchasing right to reproduce film-music is considered as capital expense or revenue expense?...
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Allu Arvind Babu Vs ACIT (Madras High Court) -
Garden Reach Ship Builders & Engineers Ltd. Vs PCIT (ITAT Kolkata) -
DCIT Vs. Coffee Day Global Ltd. (ITAT Bangalore) -
Pharmabase India P. Ltd. V DCIT. (ITAT Mumbai) -
Saregama India Ltd. Vs DCIT (ITAT Kolkata) -
Medley Pharmaceuticals Ltd. Vs DCIT (ITAT Mumbai) -
Fiserv India Private Limited Vs ACIT (ITAT Delhi) -
Capital Tours (India) Pvt. Ltd. Vs ITO (ITAT Kolkata) -