1997 (3) TMI 22 - HC - Income Tax

Business Expenditure, Bonus, Depreciation, Investment Allowance, Revenue Expenditure, Subsidy

Summary

The High Court of Madras ruled on three questions of law regarding income tax for the assessment year 1978-79. The court held that incentive bonus exceeding the Payment of Bonus Act is deductible under section 37, subsidy received does not reduce asset cost for depreciation calculation, and guarantee commission paid for capital asset purchase is allowable as business expenditure. The court answered all three questions in favor of the assessee and against the Revenue.