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2021 (7) TMI 594 - HC - Income TaxContribution made to the funds as expenditure u/s 37(1) - HELD THAT:- Funds contributed by the assessee neither remains with the Apex co-operative bank nor comes back to the assessee bank in any other form. The amounts have been spent only out of the statutory obligation. It has further been held that Section 37(1) of the Act makes an exception in case of capital expenditure or personal expenditure of the assessee or expenditure of the nature described in other Sections of Chapter IV of the Act. The case of the revenue is not that the contribution made by the assessee to the fund is capital expenditure or is in the nature of personal expenses or expenditure described in any other Sections of Chapter IV of the Act. It has further been held that assessee has incurred the expenditure for the purposes of business and therefore, the same is an admissible expenditure under Section 37 of the Act. This court in case of assessee in respect of Assessment Year 2009-10 [2021 (3) TMI 528 - KARNATAKA HIGH COURT] has allowed the payments made to Primary Agricultural Cooperative Societies and District Central Co-operative Banks as an admissible expenditure under Section 37 - Decided in favour of assessee.
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