allowability of business expenditure in case of clouser
This query is : Resolved
07 May 2009
Please help me the following query:
Whether expenditures like audit fees etc. are allowable in case of voluntary closer of business?
Whether expenditures like audit fees etc. are allowable in case of voluntary closer of business?
Vipul J. Bhavsar
(Expert)
07 May 2009
Yes. Absolutely allowed.
08 May 2009
Vipul, how can u be so sure of the same,
i havnt found any case law which is in support, most of the case laws are against the assessee. see, if the business is closed then in such cases the prerequisite to claim expenditure under section 37 i.e. for the purpose of business does not exist.
can you please focus some light on what grounds you are so sure of the same.
have u ever come across such similar situation?
or read any case law that is favorable to assessee?
if yes then it will be very useful for me...
i havnt found any case law which is in support, most of the case laws are against the assessee. see, if the business is closed then in such cases the prerequisite to claim expenditure under section 37 i.e. for the purpose of business does not exist.
can you please focus some light on what grounds you are so sure of the same.
have u ever come across such similar situation?
or read any case law that is favorable to assessee?
if yes then it will be very useful for me...
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