The Respondent assessee had claimed deduction under the head community development expenditure\u00a0 for providing \u00a0street lights\u00a0 on the road , ambulance for meeting medical emergencies , developing public garden for residence of the village where the factory is situated . The Assessing Officer disallowed the expenditure on the ground that the same are not incurred wholly and exclusively \u00a0for the purpose of \u00a0Respondents\u2019 business \u00a0. The CIT(A) up held the order the AO. On appeal Tribunal\u00a0 following the decision in CIT v. Madras Refineries Ltd (2004 ) \u00a0266 ITR 70 ( Mad)( HC) allowed the appeal on the ground that the concept of business is not static and over a period of time , it would include within its fold the care and concern for the society at large which would result in a good will being created in its favour leading\u00a0 to better business . \u00a0Accordingly \u00a0the expenditure is allowed as allowable business expenditure . On appeal by the Revenue the High Court affirmed the order of the Tribunal . (ITA No. 1686 of 2013 dt . 10 -7 2015 )( AY. 1996 -97 ) \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S.37(1): Business expenditure – Community development expenditure \u2013 Street lights on the road , ambulance for meeting medical emergencies , developing public garden – The concept of business is not static and over a period of time , it would include within its fold the care and concern for the society at large which would result in a good will being created in its favour leading to better business – Allowable as business 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-51765","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dsV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51765","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=51765"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51765\/revisions"}],"predecessor-version":[{"id":51766,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51765\/revisions\/51766"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}