| Donations to trusts cannot be treated as business expenditure, a tax tribunal has ruled. The Income-Tax Appellate Tribunal (ITAT) gave this ruling in a case pertaining to an advocate from Indore who claimed tax benefit on donation made to a charitable trust with instructions to use the money for buying books for the court library. Turning down the plea of the advocate, the ITAT held: No direct nexus has been established between the expenditure by way of donation and the profession of the assessee, such expenditure cannot be allowed deduction under Section 37 of the I-T Act (business expense).
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