Revenue deduction for advance telephone rent allowed in year of payment despite delayed installation; refunds taxable on receipt. Advance payments under the 'Own Your Own Telephone' scheme are treated as advance rent and deductible as revenue expenditure wholly and exclusively for business; the Board directs that the entire amount be allowed as a deduction in the year of payment irrespective of installation. If the telephone is not installed and the payment is refunded, the refund is taxable in the year of receipt as recovery of an expense previously allowed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Revenue deduction for advance telephone rent allowed in year of payment despite delayed installation; refunds taxable on receipt.
Advance payments under the "Own Your Own Telephone" scheme are treated as advance rent and deductible as revenue expenditure wholly and exclusively for business; the Board directs that the entire amount be allowed as a deduction in the year of payment irrespective of installation. If the telephone is not installed and the payment is refunded, the refund is taxable in the year of receipt as recovery of an expense previously allowed.
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