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Allowable deduction

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AJIT MISHRA

AJIT MISHRA (Querist)
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06 November 2012 Is damage allowabe for deduction under income tax act.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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07 November 2012 please clarify
which type of damage its nature and other details

CA. Sunil Kumar

CA. Sunil Kumar (Expert)
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08 November 2012 Income Chargeable under Profit and Gain from Business and Profession.

Section 37:-

Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession".

From above it is clear that if damage is done under normall course of business is allowable

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