Tag Archives: Section 37(1)

Compounding fee is penalty hence Disallowed

By | August 19, 2015
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Q; Whether Compounding fee is penalty and therefore not allowed as business expenditure ? Compounding fee paid by assessee, a land developer to Municipal Corporation on account of deviations from original sanctioned plan was in nature of penalty and therefore would not be allowable as deduction in view of provisions of Explanation to section 37(1) IN… Read More »

Preoperative expenses are Revenue expenses if

By | July 29, 2015
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  Question : Whether the Preoperative Expenses are Revenue expenses if company expanded its existing business?   Answer : Where assessee company expanded its existing business and claimed said expenses as pre-capitalisation cost, same was to be treated as revenue expenditure HIGH COURT OF DELHI Commissioner of Income-tax v. SRF Ltd. S. RAVINDRA BHAT AND R.… Read More »