Disallowance of Pooja Expenses under which sec...

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Rajesh (Querist)
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06 September 2010 Dear Experts,
Can anyone tell me under which section pooja expenses incurred in business is disallowed.
Thank you.
With regards,
Rajesh.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 September 2010 Can be disallowed under section 37 since it is not wholly and exclusively spent for the purposes of the business.

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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06 September 2010 Definately disallowed u/s 37 of the IT Act

SANJAY TALATI

SANJAY TALATI (Expert)
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07 September 2010 There are no. of judgements in which the Pooja Exp. are held to be business exp. and allowed. Also the amt. being small, the assessee normally does not object. However, I would like to present case laws and the Letter from the board.

Customary pooja exp. at the time of opening the assessee's books of account is an allowable deduction (Brijraman Das & Sons V. CIT - 1983).

Exp. incurred on the occassion of Diwali and mahurat are in the nature of business exp. it has been decided not to lay down any monetary mimit for the purpose of their allowance Letter E no. 13A/20/68-IT dtd. 3rd October, 1968.

Salari paid to pujari for performing puja in a temple in the mill premises for the general benefit of the employees (Commercial Ahmedabad Mills Co. Ltd. V. CIT - 1993204 ITR 140 (Guj)

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