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2016 (9) TMI 59 - HC - Income TaxAllowability of prior period expenses - Held that:- A finding of fact has been recorded by the appellate authorities that approval for payment of the said expenditure was given during the year under appeal therefore the liability crystallised during the year and similar method was being regularly followed by the assessee consistently and when there is a finding recorded by the appellate authorities that the expenditure crystallised during the year, was written in the books this year and on year to year basis was claimed in the same manner and fashion was rightly claimed and allowed during the year, is a finding of fact. Allowability of expenditure incurred on State Renewal Fund - Held that:- The said expenditure also goes to show that the renewal fund was set up by the State Government and was created with the object of providing a safety net for the workers likely to be effected by restricting in the State Public Enterprise and that a finding of fact has been recorded that the contribution made to the State Renewal fund is solely for the purposes of the welfare and benefit of the employees. In our view, it is for the assessee to decide whether any expenditure should be incurred in the course of business and expenditure of this nature being for business expediency is certainly allowable deduction under section 37(1) of the Act. In our view any normal expenditure for the welfare and benefit of the employees is allowable expenditure under section 37(1), the Tribunal has come to a finding of fact that it was a legal obligation of the respondent-assessee towards contribution of the said amount to the State Renewal Fund and there being a legal obligation as well in our view the Tribunal has come to a correct conclusion.
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