Held that the expenditure on temples and a school, incurred out of business expediency to maintain cordial relations with the local community for the smooth conduct of business, was an allowable revenue expenditure under section 37(1), as no capital asset was acquired by the assessee and the quantum of such expenditure was an irrelevant consideration. (AY. 2010-11)
ACIT v. Sociedade de Fomento Industrial (P.) Ltd. [2024] 164 taxmann.com 139 (Bom.)(HC)
S. 37(1) : Business expenditure-Quantum of expenditure irrelevant-Renovation of schools and temples-Expenditure incurred out of business exigency to maintain good relations with local villagers for smooth conduct of business is allowable as revenue expenditure, where no capital asset is acquired by the assessee.[S. 260A]
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