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2018 (10) TMI 1967 - ITAT MUMBAIDisallowance of Employee Benefit Expenses - Allowable business expenditure u/s 37(1) or not? - HELD THAT:- The nature of receipts in the hands of holding company was not relevant factor to determine the true nature of payment in the hands of the assessee payer. The same is akin to a situation where the assessee acquires certain moveable properties for the benefit of its employees as a means of retaining them or rewarding them, which is clearly allowable to the assessee as business expenditure u/s 37(1). The moveable property, in the instant case, happens to be Equity Shares of the assessee’s holding company which has led the lower authorities to treat the same as expenditure in the capital field. However, the same, in our opinion was an erroneous approach and therefore, could not be sustained. - See NOVO NORDISK INDIA PVT LTD [2013 (11) TMI 218 - ITAT BANGALORE] - Decided in favour of assessee.
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