Deduction of outgoings for purposes of computation ‑ Whether political contributions constitute outgoings within the meaning of clause (j) of sub‑section (4) - Companies Law - Letter : No. 8/23(349)/61‑PR,

Letter : No. 8/23(349)/61 ‑ PR, dated 8 ‑ 1 ‑ 1962. Subject:- Deduction of outgoings for purposes of computation ‑ Whether political contributions constitute outgoings within the meaning of clause (j) of sub ‑ section (4) Contributions made by a company to a political party or for a political purpose pursuant to section 293A should be regarded as outgoings only as they are made for commercial expediency. The fact that section 293A is not specifically referred to in clause (j) of section 349(4) is not material since the language used therein, viz., outgoings inclusive of... is only illustrative and does not purport to be exhaustive. The Research Committee of the Institute of Chartered Accountants of India agrees with this view and has published a note to that effect in March 1960 issue of its monthly journal Chartered Accountant .