Our company incurred Rs.3 lakh towards repairs to rental premises and Rs.50,000 on plumbing work. The entire expenditure was claimed as deduction which was negatived by the AO. Even if the expenditure is not deductible under section 30, is it not deductible under section 37, being the residuary provision?
Subscribe to:
Post Comments (Atom)
Expenditures though not allowable under sections 30 to 36 could be allowed by applying section 37. If an expenditure is not covered by sections 30 to 36 but the said expenditure was laid out or expended wholly and exclusively for the purpose of business and it is not in the nature of capital expenditure or personal expenditure of the assessee, it is eligible for deduction. You may refer Khimji Visram and Sons (Gujarat) (P) Ltd v. CIT (1994) 209 ITR 993 (Guj); CIT v. Punjab Financial Corporation Ltd (2007) 295 ITR 510 (P&H); Girdhari Dass and Sons v. CIT (1976) 105 ITR 339 (All) and CIT v. Alkem Laboratories (P) Ltd (2009) 314 ITR 329 (Pat).
ReplyDelete