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...
The ITAT Delhi bench, in a batch of 75 appeals led by Kosi Aviation Leasing Ltd., held that lease rentals received by Irish aircraft lessors from Indian airlines constitute profits from the operation of aircraft (Article 8 of the India-Ireland DTAA), not interest income (Article 11).
Summary of Section 37(1) IT Act for business expenditure deduction. Covers “wholly and exclusively” test, commercial expediency, and disallowance of capital, personal, and illegal expenses.
ITAT Mumbai quashes PCIT’s S. 263 revision against Colgate Palmolive, holding PCIT cannot disregard binding Coordinate Bench order based merely on Supreme Court appeal pendency.
High Court held that the Revenue itself had accepted the provision in earlier years and not disputed it even before the jurisdictional High Court in appeal for AY 2009-10. Since the provision was scientific and actually discharged, no substantial question of law arose.
ITAT Delhi held that since nature of expense i.e. purchase and source of expense not doubted and only genuineness of expense is doubted, the disallowance has to be made under section 37 of the Income Tax Act and not under section 69C. Accordingly, order of PCIT set aside.
ITAT Ahmedabad held that loss on foreign currency derivative transactions and loss on account of exchange rate difference are not speculative in nature and hence the same is allowable as business expense. Accordingly, order passed by Pr. CIT u/s. 263 directed to be quashed.
ITAT Kolkata partially reverses CPC’s Rs.6.56 lakh disallowance for Payal Enterprise. S. 38 of EPF Scheme means due date is 15 days from salary payment month, not due month, making certain payments timely.
ITAT Hyderabad deletes a ₹10.10 Cr TP adjustment on AE consultancy fees to Virinchi Ltd, holding TPO cannot question commercial expediency of services when ALP is proven.
The ITAT Ahmedabad quashed a PCIT order, ruling that revisional power cannot be invoked for mere verification, and a specific error must be proven to show prejudice to revenue.
ITAT Chennai allows a partnership firm to claim a bad debt deduction of ₹23.10 lakh, ruling that losses from employee fraud are a genuine business loss. The decision highlights that an FIR and book entries are sufficient evidence.
