The Tax Publishers2021 TaxPub(DT) 0309 (Kol-Trib)

INCOME TAX ACT, 1961

Section 37(1)

Where expenses claimed by assessee under the head 'Establishment expenses' were all statutory expenses, such expenses had to be allowed as deduction.

Business expenditure - Allowability - Establishment expenses such as telephone charges, conveyance expenses, fee to auditors, etc. -

Assessee-company claimed certain expenses such as telephone charges, conveyance expenses, fee to auditors, legal and professional fee, etc. under the head “Establishment expenses”. AO disallowed such expenses. Held: The expenses claimed by the assessee under the head 'Establishment expenses' were all statutory expenses and therefore, such expenses had to be allowed as deduction. Further, the finding of the AO that such expenses were levied on house property income was factually incorrect. Accordingly, the AO was directed to allow the expenses claimed under the head 'Establishment expenses'.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14


INCOME TAX ACT, 1961

Section 5

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