{"id":62750,"date":"2026-07-30T10:17:14","date_gmt":"2026-07-30T04:47:14","guid":{"rendered":"https:\/\/itatonline.org\/digest\/tata-consultancy-services-ltd-v-dy-cit-2023-154-taxmann-com-372-2025-129-itr-667-mum-trib-3\/"},"modified":"2026-07-30T10:17:14","modified_gmt":"2026-07-30T04:47:14","slug":"tata-consultancy-services-ltd-v-dy-cit-2023-154-taxmann-com-372-2025-129-itr-667-mum-trib-3","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/tata-consultancy-services-ltd-v-dy-cit-2023-154-taxmann-com-372-2025-129-itr-667-mum-trib-3\/","title":{"rendered":"Tata Consultancy Services Ltd. v. Dy. CIT [2023] 154 taxmann.com 372 \/ (2025) 129 ITR 667 (Mum.)(Trib.)"},"content":{"rendered":"<p>The assessee made payments to a research institution in the United States under a collaborative research programme under which its employees received specialised training and research inputs for the future growth of its business. Though the payments were described as donations, the Tribunal held that their real nature was expenditure incurred wholly and exclusively for the purposes of business. The deduction was, therefore, allowable under section 37(1). \u00a0The Assessing Officer treated payments made towards brand equity and design promotion as capital expenditure. The Tribunal held that the payment merely enabled the assessee to use the established brand and derive commercial advantage in its business without acquiring ownership of any intangible asset. The expenditure was revenue in nature and allowable as a deduction. The assessee claimed deduction of sponsorship expenditure incurred towards sponsoring a prize at an annual function. The Tribunal held that although the payment was established, the assessee failed to demonstrate how the sponsorship promoted or benefited its business. As the expenditure was not shown to have been incurred wholly and exclusively for business purposes, the disallowance was upheld. <strong>(<\/strong>AY. 2014-15).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1): Business expenditure-Research programme-Payment for employees&#8217; training and research-Expenditure incurred wholly for business purposes-Allowable-Advertisement and brand promotion expenses-Payment for use of established brand and designs-Revenue expenditure-Sponsorship expenses-Assessee failed to establish business purpose-Disallowance upheld.[S. 32]<\/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_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62750","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gk6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62750","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=62750"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62750\/revisions"}],"predecessor-version":[{"id":62751,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62750\/revisions\/62751"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}