« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  Field levelled for deposits... Budget '07: It's time to talk to commerce ministry... » 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