S. 37(1) : Business expenditure-Firm of Chartered Accountants-Part Payment of subscription fees through Mumbai entity as reimbursement of its share to international group entity-Allowable as deduction-Legal and professional fees-Criminal complaint filed against partner in matter related to business of firm-Allowable as business expenditure. [S. 195]
S. 37(1) : Business expenditure-Payee relative of promoter-AO can not decide the reasonable and commercial expenditure-Payment to consultant-Failure to procure business-No disallowance can be made-DTAA-India-UAE. [S. 40(a)(i), Art.14(7), 22(1)]
S. 37(1) : Business expenditure-Power and fuel expenses-No defects in the books of account-Ad hoc disallowance is held to be not justified-Employees’ contribution to provident fund and employees’ state insurance corporation-Delay in depositing-Deduction allowable. [S. 36(1)(va)]
S. 37(1) : Business expenditure-Real estate business-Land acquired for development-Expenditure allowable as the business commenced no business income is declared-Expenses for development of residential or commercial project to be considered as work-in-progress.
S. 36(1)(iii) : Interest on borrowed capital-Loan for purchase of Office-Interest not allowable for period till asset put to use.
S. 36(1)(iii) : Interest on borrowed capital-External commercial borrowing loan-Expansion of existing business-Disallowance cannot be made.
S. 35 : Scientific research-Research and development facility should be approved by Prescribed Authority-Failure by prescribed authority to send intimation in Form 3CL-Weighted deduction cannot be denied. [S. 35(2AB), ITR 6]
S. 32 : Depreciation -Computer software —Intangible asset- Entitled to depreciation at 60% Per Cent.
S.32: Depreciation —Hotel business – Car parked at premises of managing Director – Depreciation cannot be disallowed – Gym equipment – Depreciation cannot be disallowed because it was used by managing director .
S .14A : Disallowance of expenditure – Exempt income – Presumption that the investment was made with interest free funds – Matter remanded [ R.8D ]