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Income Tax - Highlights / Catch Notes

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Genuineness of expenditure paid to Doctor - ITAT placed an ...

Income Tax

September 6, 2017

Genuineness of expenditure paid to Doctor - ITAT placed an unfair burden on the Assessee to prove that the above expense was incurred bonafide for the business purposes of the Assessee. The Assessee had placed all the relevant details thereby discharging the initial onus. Thereafter, it was open to the Revenue to prove to the contrary - Matter restored before ITAT - HC

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  1. Illegal payment – commission paid to private doctors for referring patients for diagnosis could not be allowed as a business expenditure. - HC

  2. Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of...

  3. Pharmaceutical companies’ gifting freebies to doctors, etc. - whether Allowable Business expenditure under Section 37(1)?

  4. The disallowance of expenditure on salary - strength of 72 doctors against 100 students - AT

  5. TDS on fee paid to doctors – Doctors treated as consultants – there is no employer and employee relationship existing - tax has to be deducted u/s 194J and not u/s 192 - AT

  6. Genuineness of expenditure - Mere entries in the books of accounts does not establish the genuineness of the expenditure.

  7. Expenditure on secret commission and specimen distribution - Any secret transaction/payment that is made to secure an unfair advantage, would necessarily be repugnant to law - HC

  8. Disallowances of certain expenditure - Mere production of ledger extract without supporting bills and vouchers would not absolve the assessee from proving the...

  9. The machinery given to doctors for demonstration purposes is also a part of promoting sale of the said machinery - held as revenue expenditure and not capital asset - HC

  10. Non disapproving the documents furnished by the assessee to discharge the initial burden placed upon it u/s 68 - additions deleted - AT

 

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