{"id":16586,"date":"2021-04-14T11:19:53","date_gmt":"2021-04-14T05:49:53","guid":{"rendered":"https:\/\/itatonline.org\/digest\/mahindra-mahindra-ltd-v-acit-2020-184-itd-621-mum-trib-2\/"},"modified":"2021-04-14T11:19:53","modified_gmt":"2021-04-14T05:49:53","slug":"mahindra-mahindra-ltd-v-acit-2020-184-itd-621-mum-trib-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/mahindra-mahindra-ltd-v-acit-2020-184-itd-621-mum-trib-2\/","title":{"rendered":"Mahindra &#038; Mahindra Ltd. v. ACIT (2020) 184 ITD 621 (Mum.)(Trib.)"},"content":{"rendered":"<p>Assessee company, engaged in business of manufacturing and sale of on road automobiles, agricultural tractor, implements, etc., made provision towards pending labour demand regarding incremental wages. Tribunal held that\u00a0 provision for wages is held to be allowable as deduction.\u00a0\u00a0\u00a0\u00a0 Tribunal held that\u00a0 Prorate premium payable on redemption of foreign currency convertible Bonds allowable as deduction.\u00a0 \u00a0Tribunal held that\u00a0 the said expenditure is allowable as revenue expenditure. Tribunal held that\u00a0\u00a0 discount given on issue of employee stock ownership plan allowable as business expenditure. Tribunal held taht amount paid to an educational institution where children of assessee&#8217;s employees were taking education,\u00a0 held to be allowable as revenue expenditure. Tribunal held that\u00a0 the provision for warranty\u00a0 is held to be allowable deduction. Tribunal held that\u00a0 discount on issue of employee stock ownership plan held to be allowable.\u00a0 Tribunal held that amount which was in relation to acquisition which did not materialize was to be allowed as revenue expenditure.\u00a0 Tribunal held that <em>\u00a0<\/em>Assessee company incurred expenditure related to development of three wheeler vehicles, however, project did not materialize, since no such new asset was created for deriving benefit of enduring nature from such expenditure, same was to be allowed as revenue expenditure.\u00a0 (AY. 2005-06)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1) : Business expenditure-Provision for wages-Pending labour demand regarding incremental wages-Held to be allowable  Capital or revenue-Premium on redemption of foreign currency convertible Bonds-Prorate premium payable on redemption of foreign currency convertible Bonds-Allowable as deduction-Issue of foreign currency convertible bonds-Held to be allowable as revenue expenditure-Discount given on issue of employee stock ownership plan-Allowable as business expenditure. Employee&#8217; welfare expenses-Amount paid to an educational institution where children of assessee&#8217;s employees were taking education-Held to be allowable as revenue expenditure-Provision made towards warranty-Held to be allowable-Discount on issue of employee stock ownership plan held to be allowable-Professional fee towards acquisition-Entities which did not materialize was to be allowed as revenue expenditure-Abandoned project-Allowable as revenue expenditure. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-16586","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4jw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=16586"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16586\/revisions"}],"predecessor-version":[{"id":16587,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16586\/revisions\/16587"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=16586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=16586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=16586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}