Assessee running open-cast coal mines. Expenditure incurred towards welfare activities, community development activities, and recreation facilities. Court held that the Tribunal had found that the assessee had incurred expenditure on running of the institutions by three bodies which ran Pan India schools and also that the liability to discharge the obligation towards education fell on the assessee in terms of the National Coal Wage Agreement entered into between the employees union and the assessee, which was enforceable under law both under the Contract Act, 1872 and the Industrial Disputes Act, 1947 and also that it was not a voluntary expenditure incurred by the assessee and therefore, the expenses incurred towards education amounted to revenue expenses under section 37(1) to run the business of the assessee. The logic and justification given by the Tribunal in allowing the expenditure under section 37(1) for running the schools did not suffer from any infirmity or illegality in view of the obligations upon the assessee in terms of the National Coal Wage Agreements. As regards environmental expenses, the Tribunal remanding the matter for want of reasoning by the Commissioner (Appeals) and supporting documents is justified.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Expenditure wholly and exclusively for business purposes-Expenditure incurred towards welfare activities and community development activities and recreation facilities-Expenditure incurred to fulfil obligations under National Coal Wage Agreements-Tribunal justified in allowing expenditure-Environmental expenses Tribunal remanding matter for want of reasoning by Commissioner (Appeals) and supporting documents is justified. [S. 260A] <\/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_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":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60010","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fBU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60010","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=60010"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60010\/revisions"}],"predecessor-version":[{"id":60011,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60010\/revisions\/60011"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}