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Income Tax - This article is about one of the most important things which came out in terms that how to treat fees paid for enhancement of authorized capital to Registrar of Companies. Will it be a revenue expenditure or capital expenditure? Before starting it up and finding the answer let's just start it with what is Section 37 of the Income Tax Act,...
Read MoreIncome Tax - The losses occurring to an assessee due to dacoity, theft or embezzlement, etc., may be claimed as deductible while making the income chargeable to income-tax under the head profits and gains of business or profession under section 28. The loss by theft is not covered by section 10(2) (xv) of the Income Tax Act, 1922...
Read MoreIncome Tax - In CIT vs. Nirlon Synthetic Fibres & Chemicals Ltd. (1982) 137 ITR 1 (Bom) it was observed that expenditure incurred on inauguration ceremony of factory is a compelling necessity in modern times, it is a formality which an assessee has to incur after the business is set-up therefore it is an allowable deduction in terms of section 37(1)....
Read MoreIncome Tax - The Supreme Court in CCIT vs. Kesaria Tea Co. Ltd. (2002) 20 SITC 172 (SC) has laid down that the resort to section 41(1) can be taken only if the liability of the assessee can be said to have ceased finally and there is no possibility or reviving it. Also, it has held that an unilateral action on the part of the assessee by way of writin...
Read MoreIncome Tax - Section 37(1) of the Income-tax Act, 1961 (which corresponds to Section 10(2)(xv) of the Income-tax Act, 1922) allows deduction, while computing the income chargeable under the head profits and gains of business or profession, of any expenditure (not being expenditure of the nature described in sections 30 to 36 of the Act and not being ...
Read MoreDy. Commissioner of Income Tax Vs Elite core Technologies Private Limited (ITAT Ahemdabad) - These cross appeals are directed against the order dated 29th December 2015 passed by the CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2012-13. Both of these appeals are being disposed of, as a matter of convenience, by this consolidate...
Read MoreApollo Tyres Ltd. Vs. ACIT (ITAT Cochin) - In the case of Apollo Tyres Ltd vs. ACIT , ITAT Cochin held that The loss on sale of shares of a wholly-owned subsidiary is allowable under Section 37(1) of Income Tax Act, 1961 as a business loss if the investment in the subsidiary was made for commercial purposes....
Read MoreChandigarh State Road & Bridges Development Corporation LTD. Vs CIT (Punjab & Haryana High Court) - Section 37(1): (1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of business or profession...
Read MoreShyam SEL Ltd. vs. DCIT (Kolkata High Court) - The compensation was paid because the assessee had failed to install the pollution control device within the time prescribed. Therefore, payment of the sum of Rs.12,50,000/- is not hit by Explanation-1 to Section 37 of the Act. The Hon’ble judges of the Kolkata High Court by setting aside the ord...
Read MoreACIT vs. Jindal Power Limited (ITAT Raipur) - CSR expense disallowance is restricted to the expenses incurred by the assessee under a statutory obligation under section 135 of Companies Act 2013, and there is thus now a line of demarcation between the expenses incurred by the assessee on discharging corporate social responsibility under such a ...
Read MoreDy. Commissioner of Income Tax Vs Elite core Technologies Private Limited (ITAT Ahemdabad) -
Apollo Tyres Ltd. Vs. ACIT (ITAT Cochin) -
Chandigarh State Road & Bridges Development Corporation LTD. Vs CIT (Punjab & Haryana High Court) -
Shyam SEL Ltd. vs. DCIT (Kolkata High Court) -
ACIT vs. Jindal Power Limited (ITAT Raipur) -
D.C.I.T. Vs Autoline Industries Ltd (ITAT Pune) -
Reliance gems & Jewels ltd Vs DCIT (ITAT Mumbai) -
