Allowed deduction of business loss including amount paid as managerial remuneration on account of it being business expenses

Last updated: 22 September 2021

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Quick Summary

In a recent ruling, the Income Tax Appellate Tribunal (ITAT) allowed a business to deduct managerial remuneration as a business expense when calculating their business loss. The Assessing Officer had argued that the company wasn't genuinely engaged in business and that these payments were not legitimate business expenses. However, the ITAT found in favour of the company, referencing previous tribunal decisions that supported the deduction of managerial remuneration as a business expense.

Court :
ITAT New Delhi

Brief :
In M/S. Universal Buildrise Private Limited v. The Income Tax Officer, New Delhi [ITA No. 9296/ Del. /2019 A.Y. 2016-2017 dated September 14, 2021], M/S. Universal Buildrise Private Limited ("the Appellant") filed an appeal against Order dated September 30, 2019 of the Ld. CIT(A)-9, New Delhi, relating to the Assessment Year (AY) 2016-2017.

Citation :
ITA No. 9296/ Del. /2019 A.Y. 2016-2017 dated September 14, 2021

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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