sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 What to do when you receive a notice from the tax department
 How to use your Form 16
 Which ITR form applies to you for financial year 2017-18?
 Income tax returns filing form-2 released; should you use it? Find out
  Are you planning to file ITR 1 form? here's how to do it Income Tax Return (ITR) filing
 30 LPA-Opening Financial Controller
 ITR form 2 in java release by CBDT for return filing by individuals
 How to file your income tax return using ITR Form-1 Income Tax efiling for AY 2018-19
 Income tax returns (ITR) filing: Have you received I-T dept notice? Safeguard yourself; here is how
 Delayed release of electronic ITR forms may compel CBDT to extend the filing deadline
 Trading volume linked to tax return?

Corporate social conscience
August, 07th 2006
This is with reference to "Corporate social conscience" We need to study Section 37(1) of the Income Tax Act 1961 to understand the concept better. Section 37(1) accommodates all deductible expenditure other than those specifically covered by other provisions. Also, it is impracticable to list out all the deductible expenditures. One of the components of this section is "any expenditure laid out or expended wholly or exclusively for the purposes of the business or profession." This means that there should be a perfect nexus between the expenditure and the business if deduction is to be claimed. It is important to also understand a concept called commercial expediency. This means that certain expenses are allowed as deductible even though there may not be any specific provision in law allowing the same. For example, mamool given in places such as dockyard, railway stations, etc., are allowed considering the practical functioning of the business. Strictly speaking, there is no provision in law that says that they should be allowed or disallowed. Based on the same principle of commercial expediency, several expenses have been considered in favour of assesses. For instance, in CIT vs Heyward Waldia Refinery Ltd (1992) 209 ITR 159 (Cal.), the company presented watches to employees to encourage them to maintain timely attendance. It also enhanced the goodwill between the employer and the workers. A. N. V. Ramani Chennai
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions