TaxTMI 
TaxTMI 
Dear Sir/ Madam
We are looking out towards case laws of either Madras High Court or Supreme Court towards disallowances under section 37 . Treating of Training expenses as Capital expenditure instead of Revenue
Disallowances under section 37 case laws
18 Jun 2018 
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Section 37 classification of training expenses determines whether costs are revenue deductible or must be treated as capital.
Disallowance under section 37 turns on whether employee training costs are revenue deductible or capital in nature; recurring or skill-maintenance expenses lean toward revenue treatment, while training conferring enduring benefits or creating capital-like advantages is treated as capital and disallowed. The essential question is application of judicial criteria distinguishing capital from revenue character for training expenditures. (AI Summary)
Disallowance under section 37 turns on whether employee training costs are revenue deductible or capital in nature; recurring or skill-maintenance expenses lean toward revenue treatment, while training conferring enduring benefits or creating capital-like advantages is treated as capital and disallowed. The essential question is application of judicial criteria distinguishing capital from revenue character for training expenditures. (AI Summary)
