Business expenses - CSR - The expenditure could be related to ...

CSR Costs Viewed as 'Commercial Expediency' for 2010-11; Explanation to Section 37 Not Applicable.

January 11, 2024

Case Laws     Income Tax     HC

Business expenses - CSR - The expenditure could be related to ‘Commercial Expediency’, as any amount contributed to the BATF would generate goodwill of the local community as well as the Government Authorities. It must also be emphasised that the concept of ‘Commercial Expediency’ is from the perspective of an assessee and cannot be judged from the perspective of what the Revenue construes it to be ‘Commercial expediency.’ - As the subject matter of dispute relates to assessment year 2010-11, it can be stated that the said explanation to Section 37 of the I.T. Act would not apply as regards the present subject matter of dispute. - HC

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