Professional tax not being a profits based levy can be claimed as a revenue expenditure deduction under income tax law. Professional tax imposed by local authorities is not generally a tax on profits or gains and thus falls outside the disallowance provision for taxes assessed on profits; accordingly, professional tax paid by a person carrying on business or profession can be allowed as a deduction under the general provision for revenue expenditure.
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Provisions expressly mentioned in the judgment/order text.
Professional tax not being a profits based levy can be claimed as a revenue expenditure deduction under income tax law.
Professional tax imposed by local authorities is not generally a tax on profits or gains and thus falls outside the disallowance provision for taxes assessed on profits; accordingly, professional tax paid by a person carrying on business or profession can be allowed as a deduction under the general provision for revenue expenditure.
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