Expenditure on civil defence measures to be treated as revenue expenditure - Income Tax - 316/1981

Expenditure on civil defence measures to be treated as revenue expenditure Circular No. 316 Dated 30/9/1981 To All Commissioners of Income-tax. Sir, Subject: Expenditure on civil defence measures to be treated as revenue expenditure. Attntion is invited to Board's Circular letter No. 10/22/65-ITA. I dated 24-5-1965 (copy enclosed)* on the subject, wherein it was conveyed that expenditure on certain specified civil defence measures incurred by business concerns during emergency should be treated as revenue expenditure and allowed. 2. It has been represented now that benefit of deduction, etc., allowed in the above circular should not be confined to expenditure on civil defence measures incurred during emergency only as even when there is no emergency, it is necessary to plan and implement the said civil defence measures so that they are available in an emergency. 3. In view of the position explained above, it has been decided that expenditure incurred by business concerns on civil defence measures as specified in the Board's circular referred to above, even when there is no emergency, would be allowable to the extent found reasonable, in the manner indicated in the said circular. Yours faithfully, (Sd.) M.K. Pandey, Secretary, Central Board of Direct Taxes.