banner_ad

A doubt in tax s.44

Tax queries 779 views 2 replies

Sec.44 regarding insurance business clarifies that  "any expenditure which is not admissible under sec.30 to 43B is disallowed under First Schedule read with S.44." 

But in the case, GIC of India vs.CIT, Supreme Court has held that "amount set apart is not an expenditure and therefore the question of disallowing what is not an expenditure does not arise", whereas u/s.40A(7), amount set as provision for payment of gratuity is disallowed.

what is the correct interpretation of the above 3 statements.

plz clarify..

Replies (2)

Hi Sharadha,

 

Section 30 to 43B talks about specific expenditure which needs to be dealt with accordingly.

 

As per decision quoted Amt set aside is not an expenditure but is an appropriation for contingencies like transfer to genreal reserve whereas Amt set aside to meet the obligation of gratuity payable is certain and there is specific section 40A(7) which deals with the same.

 

Also Specific provision has overriding effect over general provision.

 

Thanks & Regards

 

Hitesh

 

 

 

THANK U HITESH..


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details