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Income Tax - Highlights / Catch Notes

Home Highlights October 2021 Year 2021 This

Disallowance of expenditure in terms of section 37 of the Act on ...


Loans Violating RBI Rules Lead to Non-Deductible Expenses u/s 37 of Income Tax Act.

October 25, 2021

Case Laws     Income Tax     AT

Disallowance of expenditure in terms of section 37 of the Act on proportionate basis for diversion of the fund - When the loans have been disbursed in violation of the rules of RBI to give benefit to a few, than expenses corresponding to such loans are not wholly and exclusively for the purpose of the business of the assessee and therefore also such expenses are not allowable as deduction - AT

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