section 37(1)

Delayed Deposit of EPF & ESI- Whether Allowable

Income Tax - After the decision of SC in Check mate Services Pvt. Ltd. vs. CIT order dated 12.10.22, the legal position is now settled that the delayed deposit of employees contribution shall be held as deemed income u/s. 2(24) of the income tax act....

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Freebies to Doctors not allowable as same is an Offence & Prohibited by Law

Income Tax - Section 37(1) of the Income Tax Act – Disallowance for Freebies to Doctors as the same is an Offence & Prohibited by Law If an assessee during the course of business & profession incurs certain expenditure, which is an offence or which is prohibited by law, the said expenditure shall be disallowed while computing his [&helli...

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Incentives to Medical Professionals: Whether deduction allowed under Income Tax Act, 1961?

Income Tax - In general practice freebies although being prohibited are provided to medical professionals by pharmaceutical companies and diagnostic centers to induce them to prescribe their medicines and tests which are higher in price than their generic alternatives. This practice of acceptance of freebies was disallowed through a circular issued on...

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Freebies by Pharma Companies – shutter down?

Income Tax - It is a routine practice that Pharmaceutical and health sector companies provide freebies such as hospitality, conference fees, gold coins, LCD TVs, fridges, laptops, etc. to medical practitioners for creating awareness about the health supplement ‘ABC’....

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Whether Penalties or Fines Paid are Allowed as an Expenditure

Income Tax - In this article we are going to discuss a problem, whether Penalty/Penal Interest levied on any organisation is allowed as deduction to the assessee under provisions of Section 37(1) of the Income Tax Act, 1961.. PROBLEM: M/s. ABC Limited has been penalised under provisions of GST Act, 2017 to the tune of Rs. 50,000/- as […]...

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Explanation 2 appended to Section 37(1) related to CSR expenses is prospective

PCIT Vs Steel Authority of India Ltd. (Delhi High Court) - PCIT Vs Steel Authority of India Ltd. (Delhi High Court) Undisputedly, the departmental authorities have disallowed the CSR expenses, firstly, on the reasoning that it is of capital nature, and secondly, it is not incurred wholly and exclusively for the purpose of business. As per section 135 of the...

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Permit charges paid to Government for operating buses in respective state is revenue expenditure

A.R.A.P. Enterprises Pvt. Ltd. Vs ACIT (OSD) (ITAT Chennai) - ITAT Chennai held that permit charges paid to Government to operate buses in the state is revenue expenditure. Accordingly Pondicherry permit charges paid to Government of Pondicherry to operate buses in the state of jurisdiction of Pondicherry is allowable revenue expenditure....

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Interest Paid on Belated Service Tax Payments is Allowable under section 37(1)

Prince Holdings Madras (P) Ltd Vs DCIT (ITAT Chennai) - ITAT held that the interest paid on belated payments of service tax is allowable for deduction under Section 37(1) of the Income Tax Act, 1961...

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Section 43B not applies to provisions of section 36(1)(va) in respect of employees contribution

Nirakar Security & Consultancy Services Pvt. Ltd. Vs ITO (ITAT Cuttack) - SC held that the provisions of section 43B would not apply to the provisions of section 36(1)(va) of the Act in respect of employees contribution....

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Delayed payment in respect of employees contribution to PF & ESI is not allowable

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack) - BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack) Admittedly, the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd(supra) has categorically held that the employees contribution to PF and ESI to the extent it is not paid within due date prescribed under the PF Act, is not allowable ...

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Recent Posts in "section 37(1)"

Explanation 2 appended to Section 37(1) related to CSR expenses is prospective

PCIT Vs Steel Authority of India Ltd. (Delhi High Court)

PCIT Vs Steel Authority of India Ltd. (Delhi High Court) Undisputedly, the departmental authorities have disallowed the CSR expenses, firstly, on the reasoning that it is of capital nature, and secondly, it is not incurred wholly and exclusively for the purpose of business. As per section 135 of the Companies Act, 2013, every company havi...

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Permit charges paid to Government for operating buses in respective state is revenue expenditure

A.R.A.P. Enterprises Pvt. Ltd. Vs ACIT (OSD) (ITAT Chennai)

ITAT Chennai held that permit charges paid to Government to operate buses in the state is revenue expenditure. Accordingly Pondicherry permit charges paid to Government of Pondicherry to operate buses in the state of jurisdiction of Pondicherry is allowable revenue expenditure....

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Interest Paid on Belated Service Tax Payments is Allowable under section 37(1)

Prince Holdings Madras (P) Ltd Vs DCIT (ITAT Chennai)

ITAT held that the interest paid on belated payments of service tax is allowable for deduction under Section 37(1) of the Income Tax Act, 1961...

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Section 43B not applies to provisions of section 36(1)(va) in respect of employees contribution

Nirakar Security & Consultancy Services Pvt. Ltd. Vs ITO (ITAT Cuttack)

SC held that the provisions of section 43B would not apply to the provisions of section 36(1)(va) of the Act in respect of employees contribution....

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Delayed payment in respect of employees contribution to PF & ESI is not allowable

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack)

BBG Metal Syndicate Pvt Ltd Vs DCIT (ITAT Cuttack) Admittedly, the Hon’ble Supreme Court in the case of Checkmate Services Pvt Ltd(supra) has categorically held that the employees contribution to PF and ESI to the extent it is not paid within due date prescribed under the PF Act, is not allowable u/s.36(1)(va) of the Act. […]...

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Delayed Deposit of EPF & ESI- Whether Allowable

After the decision of SC in Check mate Services Pvt. Ltd. vs. CIT order dated 12.10.22, the legal position is now settled that the delayed deposit of employees contribution shall be held as deemed income u/s. 2(24) of the income tax act....

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ESOP cross-charge is allowable expenditure u/s 37(1) of the Income Tax Act

Hewlett Packard (India) Software Operation Pvt. Ltd. Vs DCIT (ITAT Bangalore)

ITAT Bangalore held that expenditure of ESOP cross-charge is wholly and exclusively for the purpose of business, said amount remitted by the assessee to ultimate holding company, and hence allowable expenditure u/s 37(1) of the Income Tax Act....

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Voluntary CSR Expenditure exclusively for purpose of business allowable

Agappe Diagnostics Limited Vs DCIT (ITAT Mumbai)

CSR expense disallowance is restricted to expenses incurred by assessee under statutory obligation u/s.135 of companies Act 2013 and it doesn’t apply to expenditure incurred in discharge of corporate social responsibility (CSR) on voluntarily basis....

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Interest paid for delayed deposit of TDS cannot be equated to penalty

Trinity Infraventures Limited Vs ACIT (ITAT Hyderabad)

Interest on TDS is not interest paid on income tax per se and the disallowance thereof, is unwarranted and interest paid for delayed deposit of TDS cannot be equated to penalty or breach of law....

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ESOP expenditure allowable as deduction u/s 37(1) of the Income Tax Act

EIT Services India Pvt. Ltd Vs DCIT (ITAT Bangalore)

ITAT Bangalore held that expression expenditure also includes loss and therefore the difference between the price at which the shares are issued to the employees and the market value of the shares would be expenditure incurred for section 37(1) of the Income Tax Act...

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