In a recent High Court case, the issue of whether advertisement ...

HC ruled against the revenue: says ad expenses can be deducted, VRS payments allowed, project advances = revenue. Staff welfare costs OK.

Case Laws Income Tax

July 2, 2024

In a recent High Court case, the issue of whether advertisement expenditure could be considered as allowable revenue expenditure was discussed. The ITAT allowed the claim, citing a previous decision where the Tribunal's judgment was accepted by the Revenue. The Court agreed with the assessee, stating that the Revenue cannot raise a question of law if it had accepted the Tribunal's finding in a previous year. Regarding Voluntary Retirement Scheme (VRS) payments, the Court followed a previous decision in favor of the assessee. Advances for Project Development were also treated as revenue expenses. Expenses related to workmen and staff welfare were allowed u/s 40A(9), following the principles established in a Supreme Court case. The Court upheld the Tribunal's decision in the assessee's favor based on consistency with a previous year's ruling.

View Source

← Previous Next →

In a recent High Court case, the issue of whether advertisement ...

HC ruled against the revenue: says ad expenses can be deducted, VRS payments allowed, project advances = revenue. Staff welfare costs OK.

Case Laws Income Tax

July 2, 2024

You may also like:

Nature of expenses - Allowability of Penal Interest paid to NOIDA - CIT(A) correctly allowed the assessee to capitalize the interest paid by the assessee to Noida...

Nature of expenses - Relaunch expenses - deferred revenue expenditure claimed to the extent of 1/3rd in each of the year -The tribunal disagreed with the AO's...

Ad-hoc disallowance of various expenses on the ground that said expenses incurred in cash and not further, supported by necessary bills and vouchers - once the Assessing...

Disallowance of proportionate interest expenditure - capital attributable to project ‘B’ i.e. unfinished project - This interest expenditure disallowed was not related...

30% ad-hoc disallowance of travelling expenses being car charges, foreign travelling expenses and domestic travelling expenses - The Assessee argued that the expenses...

Disallowance of royalty expenses - allowable revenue expenses - It is only in Assessment Year 2005-06, the said payment of royalty has not been allowed in the hands of...

Addition under the head of Vehicle Running Expenses and Repairs & Maintenance - "exaggerated expense' or "not reasonable expense". - The onus is on the Revenue to...

Valuation - clearance of HTS wire to their sister concern for pressed concrete slippers by the said sister concern - The adjudicating authority below has failed to...

Claim of expenses disallowed u/s 37(1) - expenditure/loss incurred on abandoned project – for the first two years the expenditure is shown as “work-in-progress” - claim...

Adjustment of excess service tax paid with subsequent service tax liability - case of Revenue is that Rule 6 (3) of Service Tax Rules, 1994 do not provide for such...

Ad-hoc disallowance at the rate of 10% on credit card expenses - Prima Facie the said disallowance is ad-hoc in nature. AO ought to have made reference to any of such...

Disallowance of interest expenses u/s.36(1)(iii) - Once project is abandoned, it seizes to become eligible asset to capitalize borrowing cost to the work in progress...

Disallowance of pre-operating expense for a “Mawa Project” - revenue v/s capital expenditure - expenditure incurred for expansion of the dairy business of the assessee -...

Determination of correct profits - percentage completion method - real estate development - when a stage is arrived that risk and rewards shift from the developer to...

Bond issue expenses - Capital or revenue in nature - held as revenue expenditure - AT

Quick Updates: