Income Tax : Explains when food and hospitality expenses qualify as business deductions and outlines the tests under Section 37(1) to distingui...
Income Tax : Explains how Section 37(1) restricts deductions to expenses exclusively for business and highlights gray-area items like home offi...
Income Tax : ITAT Ahmedabad held settlement payments in foreign civil cases are deductible under Section 37(1) as compensatory, not penal, and ...
Income Tax : Summary of Section 37(1) IT Act for business expenditure deduction. Covers "wholly and exclusively" test, commercial expediency, ...
Income Tax : Examines the tax implications of employer-funded education, covering employer deductions and employee taxation. Includes analysis ...
Income Tax : Interest income earned by a foreign bank from foreign currency loans extended to Indian corporates was taxable on a gross basis. S...
Income Tax : ITAT Jodhpur held that Section 37(1) business expenses cannot be disallowed without specific findings on genuineness. All appeals ...
Income Tax : ITAT Mumbai held that an accrued business liability supported by evidence is deductible under Section 37(1) despite future payment...
Income Tax : ITAT Mumbai held that eligible CSR donations qualify for Section 80G deduction if statutory conditions are met, despite disallowan...
Income Tax : ITAT held that increased employee remuneration cannot be disallowed merely because business revenue declined where the expenditure...
ITAT Ahmedabad dismissed the Revenue’s appeal, confirming CIT(A)’s deletion of ₹1.06 crore addition under Section 41(1). The tribunal held that the unsecured loans were used for capital expenditure, not trading purposes, making the addition inapplicable.
ITAT Ahmedabad held settlement payments in foreign civil cases are deductible under Section 37(1) as compensatory, not penal, and Explanation 3 is not retrospective.
ITAT Mumbai held that in absence of recording of non-satisfaction in terms of section 14A(2) of the Income Tax Act, invocation of Rule 8D is not permissible. Accordingly, disallowance u/s. 14A read with Rule 8D cannot be sustained.
ITAT Ahmedabad held that settlement payments in relation to patent disputes are allowable as business deduction under section 37(1) of the Income Tax Act since the same is not a penalty for an offence or for a purpose prohibited by law.
ITAT Chennai granted relief, holding that reversal of a provision for liquidated damages, which was disallowed and subsequently taxed under VSV Scheme in earlier years, cannot be taxed again under Section 41(1). This prevents double taxation.
The ITAT Mumbai set aside the PCIT’s revisionary order, holding that the AO’s decision to allow Section 80G deduction on voluntarily disallowed CSR expenses was a plausible view. The ruling reaffirmed the Supreme Court principle that Section 263 revision cannot be invoked merely for holding an alternate opinion.
The ITAT Ahmedabad deleted a Rs.7.46 lakh disallowance of employees’ PF contribution, ruling that payment made on the next working day is timely when the statutory due date falls on a Sunday. The ruling applied Section 10 of the General Clauses Act, confirming that the delay was valid and unavoidable.
The core issue was the disallowance of Rs.169 Cr in Customer Acquisition Cost (CAC), treated as capital expenditure for an enduring benefit. The ITAT deleted the addition, ruling that routine, recurring expenses like porting charges and handset subsidies in the telecom sector are revenue in nature and fully deductible under S 37(1).
The Delhi ITAT deleted a disallowance of Rs.1.22 crore, ruling that charges paid to the Stock Exchange for margin shortfall are regulatory fees, not penalties for offenses prohibited by law. Following Delhi High Court precedent, the Tribunal held these payments are allowable commercial business expenditure under Section 37(1)
ITAT Chennai allowed AM International Holdings’ claim for ₹60.94 lakh software expenses, ruling that the reimbursement paid to a group company, Tamil Nadu Petroproducts Ltd., for terminating an unsatisfactory IT contract was a legitimate business expenditure under Section 37(1) of the Income Tax Act, 1961.
