Allowing the appeal of the assessee the\u00a0 Court held that\u00a0 the bill was raised by the stock brokers only on March 10, 1993\u00a0 though the rights issue had been closed on October 4, 1991\u00a0 This being the position, it was rightly claimed by the assessee in respect of the assessment year 1993-94. As regards the collaboration agreement with foreign company concluded on 26-1-1992 however the approval of Central Government was only on 13-10-993 and the approval effective from the date of agreement. Accordingly the royalty payments under the agreement is deductible in the AY. 1993-94. The amount spent for acquiring membership in the clubs stood on a different footing from the amounts incurred for availing of materials supplied or service provided in the clubs. The amount paid to obtain membership of the club was deductible. (AY. 1993-94)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure\u2013Right issue\u2013Collaboration agreement\u2013Year of allowability\u2013Held allowable in the year of receipt of bill and approval-Club membership fee-Allowable as business expenditure. [S. 145]<\/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":[1],"tags":[],"class_list":["post-7602","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1YC","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7602","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=7602"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7602\/revisions"}],"predecessor-version":[{"id":9173,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7602\/revisions\/9173"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=7602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=7602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=7602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}