Ransom paid for business is tax deductible

0
1285
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

Responding to a reference made to it in Commissioner of Income tax, Jabalpur v M/s Khemchand Motilal Jain, Tobacco Products (P) Ltd, Sagar, Madhya Pradesh High Court has ruled the payment of ransom is not prohibited and it can be deducted under section 37(1) of the Income Tax Act, 1961. The court held that it is a settled law that unless a particular expenditure, incurred for business and commercial expediency, is specifically barred by a provision of the Income Tax Act, it has to be allowed. “The only point is that the assessee has to establish that the expenditure was incurred for the purpose of business.”

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link