1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Voluntary expenditure under long term interest of business

ByCA Gopal Nathani

Oct 3, 2021

Section 37(1) is basket section which can hold any kind of expenditure other than personal and capital expenditure.

Vide [2016] 6 ITR-OL 0646- [2016] it is held that expenditure incurred voluntarily and without any necessity is also deductible under section 37(1) of the Act, so long as it is incurred wholly and exclusively for the purposes of business.

In this case the assessee took upon itself additional excise duty demand pursuant to the order of the Settlement Commission against its contract manufacturers on the pretext of the long term interest of its business which expenditure according to the Court is an admissible under the law.