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2022 (10) TMI 1140 - ITAT CUTTACKAllowable business expenditure - peripheral development expenses inasmuch as the said expenditure is a business expenditure within the meaning of section 37 - submission that the assessee has been unable to show any business connection in respect of incurring of the expenditure - HELD THAT:- Admittedly, the assessee is not in the business of mining, therefore, the said expenditure cannot be said to be peripheral development expenditure. In such circumstances, we are left with only issue as to whether the said expenditure was business expenditure or not. The evidence produced by the assessee clearly shows that the expenditure has been incurred at the direction from BMC. The payments have been made by cheque to the contractor sponsored by the BMC. Obviously, the beautification work had been done at the direction of the BMC and a Board is required to put up specifying that the work has been done by a particular individual or company. This is also in the form of advertisement. Here, as it is noticed that the expenditure has been incurred at the instruction of the BMC, we are of the view that it cannot be said the payment has been made for extraneous consideration. This being so, we are of the view that the expenditure is incurred for the purpose of business of the assessee and same is allowable. Appeal of the assessee is allowed.
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