Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2003 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2003 (5) TMI 30 - HC - Income TaxOnce the marketing expenditures are excluded from the purview of expenses on advertisement, publicity and sales promotion and such expenses do not fall in any other categories of expenditure detailed in sub-section (3B) of section 37, the question of invoking any part of section 37(3A), read with sub-section (3B) cannot arise - it is obvious that on account of marketing overheads or salary component of marketing expenditure is not an expenditure governed by sub-section (3A) and sub-section (3B) of section 37. Such expenses cannot be disallowed by referring to the inapplicability of Explanation (b) on the ground that the employees to whom salaries have been paid were not the employees of the assessee. The entire amount shared by the assessee as marketing overheads for running its business was one single indivisible expense incurred wholly and exclusively for the purpose of its business, hence allowable u/s 37
|