Section 37

Section 37 General Deductions allowed for Business & Profession

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...

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General Deductions of Expenditure Under Section 37(1)

Income 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 […]...

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Question of Deductibility of an Expenditure U/s. 57(iii) of Income Tax Act, 1961

Income 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....

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Analysis of expenses allowable under section 37 of Income Tax Act, 1961

Income 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, ...

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S. 37 Allowability of Business Expenditure & case laws

Income 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 ...

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Allow deduction of Interest Paid to Government under Income Tax Act – ICAI

Income 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...

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Bad Debt cannot be claimed as deduction unless written off in Books

Allu 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...

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CSR expenses incurred before 01.04.2015 deductible as business expenses

Garden 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...

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Foreign Exchange Fluctuations allowable as Revenue Expense- Section 37

DCIT 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...

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Foreign Exchange Fluctuation Loss arising out of Re-Statement of ECB Allowed

Pharmabase 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?...

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Payment of Royalty for Purchasing Right to Re-Produce Film-Music is a Revenue Expense

Saregama 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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Recent Posts in "Section 37"

Section 37 General Deductions allowed for Business & Profession

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 More
Posted Under: Income Tax |

Bad Debt cannot be claimed as deduction unless written off in Books

Allu 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 between the […]...

Read More

CSR expenses incurred before 01.04.2015 deductible as business expenses

Garden 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 deduction for both A.Y. 2013-14 and A.Y. 2014...

Read More

Foreign Exchange Fluctuations allowable as Revenue Expense- Section 37

DCIT 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 held that the actual […]...

Read More

Foreign Exchange Fluctuation Loss arising out of Re-Statement of ECB Allowed

Pharmabase 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 More

Payment of Royalty for Purchasing Right to Re-Produce Film-Music is a Revenue Expense

Saregama 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?...

Read More

MCI Code of Conduct not Applicable to pharma companies; Freebies to doctors allowed

Medley Pharmaceuticals Ltd. Vs DCIT (ITAT Mumbai)

ITAT states the code of conduct prescribed by the Medical Council is applicable only to medical practitioners/ doctors registered with the MCI and does not apply to pharmaceutical companies & the healthcare sector in any manner....

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General Deductions of Expenditure Under Section 37(1)

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 More
Posted Under: Income Tax |

Stamp Duty to obtain Business Premises on Lease is Revenue Expense

Fiserv India Private Limited Vs ACIT (ITAT Delhi)

The issue under consideration is whether the stamp duty paid for obtaining the business premises on lease is deductible under section 37 of the Income Tax Act, 1961?...

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Puja Expenses for Smooth functioning of Business allowable

Capital Tours (India) Pvt. Ltd. Vs ITO (ITAT Kolkata)

It is noted that the assessee is into the business of truck plying in North-East States and it is common knowledge that the drivers and cleaners before they start their journey on their trucks conduct puja of the God they believe and they incur expenses for buying garlands, bhog etc. for safe and smooth running of the vehicle while they g...

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