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The Tax PublishersITA No. 610/Bang/2018
2021 TaxPub(DT) 0041 (Bang-Trib)INCOME TAX ACT, 1961
Section 37(1)
Contribution made to Bellary Agenda Task Force (BATF) was as per directions of Dy. Commissioner of Bellary District Administration for the purpose of infrastructure development and to maintain cordial relationship with government and provide social facilities to deprived class and which had a nexus with assessee's business. Therefore, contribution was wholly and exclusively for the purpose of business and was allowable under section 37(1).
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Business expenditure - Contribution made to BATF - Business nexus -
Assessee engaged in trading of iron-ore claimed deduction of contribution made to Bellary Agenda Task Force (BATF). AO disallowed deduction alleging no business purpose. Held: Contribution was made as per directions of Dy. Commissioner of Bellary District Administration for the purpose of infrastructure development and to maintain cordial relationship with government and provide social facilities to deprived class and which had a nexus with assessee's business. AO had not disputed genuineness of expenditure and, therefore, contribution made by assessee was wholly and exclusively for the purpose of business and was allowable under section 37(1).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 40(a)(ia), Second proviso
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