Allowability of expenditure under pgbp
This query is : Resolved
23 November 2017
whether damages paid to govt of West Bengal of Rs.15,00,000 paid as per the terms of contract due to defects found in flyover constructed before 5 years, from relevant financial year is allowable as business expenditure? The company under consideration is engaged in undertaking civil contracts for infrastructure facility from various companies as well as Central and State Govt's.
Message likes :
1 times
23 November 2017
The amount of damages so paid is an allowable expenditure since it is in the
ordinary course of business. But supreme court in Travancore sugar's case
reported in (1973) 88 ITR (1) reminded that the surer way of arriving at a
conclusion would be to first ascertain by reference to the document under
which the obligation for incurring the expenditure is created and thereafter
to apply the principles embedded in the court decisions of those facts.
ordinary course of business. But supreme court in Travancore sugar's case
reported in (1973) 88 ITR (1) reminded that the surer way of arriving at a
conclusion would be to first ascertain by reference to the document under
which the obligation for incurring the expenditure is created and thereafter
to apply the principles embedded in the court decisions of those facts.
29 November 2017
Yes allowable u/s.37
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Gift of mutual fund units to daughter
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- PPF interest-As Exempt Income disclosure
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
