Allowable Expenditures
This query is : Resolved
19 October 2009
There are two business units : One Manufactruing Unit (Under Construction) Second Trading Units (Started Trading)
In Case of Manufactruing Unit (Under Construction), all the expenditures trfd to CWIP for capitalization nothing debited to PNL
In Case of Trading Units (Started Trading)
There is no any revenue generated but there are some expenditures like Office Rent, Telephone Exps, Travelling Exps, Salary and other Admin Exps and Depreciation on Computers, Car, Office Equipments.
My simple questin is ??
whether all the expenditures of trading units will be allowable and loss will also be allowable to carry-forward.
Have any case law in this regard?
In Case of Manufactruing Unit (Under Construction), all the expenditures trfd to CWIP for capitalization nothing debited to PNL
In Case of Trading Units (Started Trading)
There is no any revenue generated but there are some expenditures like Office Rent, Telephone Exps, Travelling Exps, Salary and other Admin Exps and Depreciation on Computers, Car, Office Equipments.
My simple questin is ??
whether all the expenditures of trading units will be allowable and loss will also be allowable to carry-forward.
Have any case law in this regard?
19 October 2009
Expenditure can not be disallowed on the ground that there is not income subject to expenditure should not be incurred towards income which is exempt from tax.
19 October 2009
Thanks for reply but it is a case pending for assessment, is it possible to a have decided case law on these points?
19 October 2009
On what ground AO is going to disallow the expenditure.
20 October 2009
All the above expenditures mostly fall u/s 37(1)/32(dep) .
incurred wholly for the purpose of business .
Question of disallowance doesnt arise .
incurred wholly for the purpose of business .
Question of disallowance doesnt arise .
20 October 2009
In any case the AO cannot disallow the expenditure unless he has concrete evidence that expenditure had not fall u/s 37.
Losses will allow to be set off.
Losses will allow to be set off.
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
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Itr 1 processing
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
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
