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 Tribunal ruled that application software purchased independently from computer hardware is still covered under the specific depreciation entry for computer software. The Assessing Officer was directed to allow depreciation at 60% instead of 25%.
The Tribunal held that a 25% ad hoc disallowance of agricultural expenses was unjustified since the assessee furnished bills, vouchers, bank statements, and detailed expense records. It directed deletion of the entire disallowance.
ITAT Mumbai allowed deduction of ESOP expenses under Section 37(1) by following Karnataka High Court’s ruling in Biocon Ltd. Tribunal directed Assessing Officer to allow expenditure for relevant assessment year
ITAT held that Accounting Standard-19 governs accounting treatment but does not determine tax treatment under the Income-tax Act. It ruled that depreciation belongs to the legal owner while lease rentals remain deductible for the lessee.
Bangalore ITAT held that mine development expenditure incurred by a mining contractor was allowable as a revenue deduction under Section 37 and not governed by Section 35E. The Tribunal followed its earlier decision in the assessee’s own case and dismissed the Revenue’s appeal.
The ITAT Mumbai held that Section 69C cannot be invoked where expenditure is duly recorded in the books and its source is fully explained. It deleted the addition relating to royalty, commission, and technical service payments.
The ITAT Pune upheld the deduction under Section 10AA after finding that the Assessing Officer had not established that the SEZ units were formed by splitting up or reconstruction of an existing business. It followed earlier decisions in the assessee’s own case.
The ITAT Mumbai held that Explanation 1 to Section 37(1) could not apply in the absence of any finding by the competent authority that the assessee had committed an offence or violated the Insurance Act. The disallowance was therefore deleted.
ITAT Delhi held that where the variation between the issue price and fair market value is within the 10% safe harbour under Rule 11UA, the issue price is deemed to be the FMV. The addition under Section 56(2)(viib) was therefore deleted.
Expenditure of ₹4.49 crore incurred on maintenance dredging for removal of natural siltation and restoration of the existing operational depth of the jetty constituted revenue expenditure allowable under section 37(1). Accordingly, the disallowance made by AO and sustained by CIT(A) was deleted.
