Court dismisses appeal on taxi expenditure disallowance under Income-tax Act

The High Court of Bombay dismissed an appeal regarding the disallowance of expenditure on hiring yellow taxis under section 37(3A) of the Income-tax Act, 1961 for the assessment year 1985-86. The court found that section 37(3B) did not apply to the case as it specifically mentioned hire charges for engaging cars, not taxis. The appeal was dismissed with no costs.

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The High Court of Bombay dismissed an appeal regarding the disallowance of expenditure on hiring yellow taxis under section 37(3A) of the Income-tax Act, 1961 for the assessment year 1985-86. The court found that section 37(3B) did not apply to the case as it specifically mentioned hire charges for engaging cars, not taxis. The appeal was dismissed with no costs.

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