Claim of expenditure u/s 37(1) even if there is no corresponding ...

Tax Authorities Challenge Expenditure Deduction u/s 37(1) Due to Lack of Reported Sales, Legal Principles Support Deduction.

September 26, 2023

Case Laws Income Tax AT

Claim of expenditure u/s 37(1) even if there is no corresponding income / revenue - The tax authorities have also taken a view that the assessee has not shown any sales in the books of account. It is well settled proposition of law that, once the assessee has set up his business, all revenue expenses are allowable as deduction irrespective of the receipt of income. - AT

View Source

← Previous Next →

Claim of expenditure u/s 37(1) even if there is no corresponding ...

Tax Authorities Challenge Expenditure Deduction u/s 37(1) Due to Lack of Reported Sales, Legal Principles Support Deduction.

September 26, 2023

Case Laws Income Tax AT

You may also like:

The assessee claimed deduction for interest and late fees paid on account of delay in filing GST returns. The authorities disallowed the claim, invoking Explanation 1 to...

Deduction of interest on late deposit of TDS under Section 37(1) - payment of interest on late deposit of tax deduction at source by the assessee leviable u/s 201 (1A)...

Pharmaceutical companies’ gifting freebies to doctors, etc. - whether Allowable Business expenditure under Section 37(1)?

Payment made for surrender of tenancy rights - deduction allowed u/s 37(1) - AT

Deduction u/s 35(2AB) - Expenditure which was not eligible for weighted deduction u/s 35(2AB) - scientific research and development expenditure - such R&D expenditure...

Right of Auction Purchaser of property - Recovery of Outstanding dues of Bank and tax dues under the VAT / sales tax act - Priority of claims - Attachment order - The...

Disallowance of Corporate Social Responsibility (CSR) expenses u/s 37(1) - prior to insertion of Explanation – 2 to section 37(1) of the Act, w.e.f., 01.04.2014, as per...

Business expenditure u/s.37(1) - share issue expenses - assessee has abandoned the proposal to issue shares at later stage - when the nature of expenditure incurred by...

Disallowance of expenses made u/s.37(1) - disallowance of expenditure on adhoc basis made by the ld. AO by giving a categorical finding that the ld. AO had not even...

Misappropriation of funds by an employee led to the assessee claiming expenses u/s 37(1) of the Act, which were later discovered to be embezzlement. The assessee...

Allowable expense u/s 37(1) - provisions for claim Incurred but Not Reported (IBNR) and claim Incurred But Not Enough Reported (IBNER) - whether such provisions are in...

Recovery of sales tax dues - encumbered property or not - liability of auction purchasers - this is a clear case in which the Sales Tax Department had a charge on the...

Software development expenditure which was application software was revenue in nature - deduction allowed u/s 37.

Deduction u/s 37 - Guarantee commission paid to State Government – allowed as revenue expenditure - HC

Addition u/s 37(1) - non-competition fee - revenue or capital expenditure - it does not bring in any capital asset - the payment is allowable u/s 37(1) - HC

Quick Updates: