section 37(1)
Whether Inaugural Expenses Deductible Under Section 37 (1)
Income Tax - Many times reference has been sought regarding the question whether inaugural expenses incurred by a person are deductible under section 37(1) or not while computing the profits & gains from business or profession (of that person)....
Read MoreSection 37: Fees paid for enhancement of authorized capital; revenue or capital expenditure?
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 MoreClaim of deduction of Loss Due to Dacoity, Theft, Embezzlement, etc., as Business Loss
Income 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 MoreWhether Inaugural expenses deductible Under Section 37(1)
Income 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 MoreMaking Chargeable to Tax U/s. 41(1) of Allowance/Deduction Already Made
Income 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 MoreLoan sourcing fees paid is allowable as revenue expenditure
Dy. CIT Vs Citicorp Maruti Finance Ltd. (ITAT Mumbai) - Brief facts are, the assessee a non–banking finance company (NBFC) is engaged in hire, purchase, finance and loan business. For the assessment year under dispute, the assessee filed its return of income on 31-10-2007, declaring loss of Rs. 12,06,02,070. ...
Read MoreExpenditure on issue of FCCB allowable as revenue expense
Dy. CIT Vs Reliance Natural Resources Ltd. (ITAT Mumbai) - FCCB is akin to borrowings made by issuing debentures and both of them are different types of debt instruments only. Accordingly it was held in the case of Prime Focus Ltd. (supra), that the expenses incurred in connection with FCCB are revenue in nature. ...
Read MoreCompounding fee for permissible deviation of building plan is allowable
Keerthi Estates (P) Ltd. Vs. Dy. CIT (ITAT Hyderabad) - Keerthi Estates (P) Ltd. Vs. DCIT (ITAT Hyderabad) The assessee has paid compounding fine to regularize the building plan. The payment of such compounding fine is penalty in the nature of an offence or which is prohibited by law. We have noticed that the decision on this count is divided among the v...
Read MoreCompensation paid for loss to clients due to negligence of employees of assessee is allowable expense
Ashwani Financial Services (P.) Ltd. Vs. JCIT (ITAT Amritsar) - Circular No. 35 issued by Board clearly states the losses arising due to negligence of employees has to be allowed as expense if the loss took place in the normal course of the business and the amount involved was necessarily kept for the purpose of business. In the present case, the losses were nec...
Read MoreExpenses not allowable on Failure to prove that it was incurred for business purpose
Kanhaiyalal Dudheria Vs Jt. CIT (ITAT Bangalore) - These are appeals filed by the assessee-firm directed against the common order of the Commissioner (Appeals), Gulbarga, dated 29-1-2016 for the assessment years 2011-12 and 2012-13. Since common issue is involved in both the appeals, we proceed to dispose of the same by this common order....
Read MoreRecent Posts in "section 37(1)"
Loan sourcing fees paid is allowable as revenue expenditure
Dy. CIT Vs Citicorp Maruti Finance Ltd. (ITAT Mumbai) -
Expenditure on issue of FCCB allowable as revenue expense
Dy. CIT Vs Reliance Natural Resources Ltd. (ITAT Mumbai) -
Compounding fee for permissible deviation of building plan is allowable
Keerthi Estates (P) Ltd. Vs. Dy. CIT (ITAT Hyderabad) -
Compensation paid for loss to clients due to negligence of employees of assessee is allowable expense
Ashwani Financial Services (P.) Ltd. Vs. JCIT (ITAT Amritsar) -
Whether Inaugural Expenses Deductible Under Section 37 (1)
Expenses not allowable on Failure to prove that it was incurred for business purpose
Kanhaiyalal Dudheria Vs Jt. CIT (ITAT Bangalore) -
Income tax withheld abroad in respect of which no foreign tax credit is admissible, cannot be allowed U/s. 37(1)
Dy. Commissioner of Income Tax Vs Elite core Technologies Private Limited (ITAT Ahemdabad) -
Allowability of Loss on sale of shares of wholly-owned subsidiary
Apollo Tyres Ltd. Vs. ACIT (ITAT Cochin) -
Guarantee Commission Paid for Acquisition of Fixed Assets – Allowable as Revenue Expenditure
Chandigarh State Road & Bridges Development Corporation LTD. Vs CIT (Punjab & Haryana High Court) -
Compensation paid for damage to environment is allowable
Shyam SEL Ltd. vs. DCIT (Kolkata High Court) -
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