https://www.taxtmi.com/caselaws?id=65239 For tax purposes, book treatment does not determine allowability: advertisement spend on launching a new product was held revenue in nature and deductible despite being shown as deferred revenue expenditure. A warranty provision based on scientific estimation and actual experience was treated as an accrued liability, not a contingent one, and allowed. Royalty payable outside India was deductible where tax had been deducted and deposited as required by Chapter XVII-B. Tax paid by an employer on a managing director's salary was not allowable, while house rent and club fee perquisites were not disallowed on the material available. Payments to a foreign collaborator were not hit by section 40A(2)(b) absent proof of excessiveness. en-us Tue, 29 Jun 2004 00:00:00 +0530 Sat, 06 Jul 2024 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65239 For tax purposes, book treatment does not determine allowability: advertisement spend on launching a new product was held revenue in nature and deductible despite being shown as deferred revenue expenditure. A warranty provision based on scientific estimation and actual experience was treated as an accrued liability, not a contingent one, and allowed. Royalty payable outside India was deductible where tax had been deducted and deposited as required by Chapter XVII-B. Tax paid by an employer on a managing director's salary was not allowable, while house rent and club fee perquisites were not disallowed on the material available. Payments to a foreign collaborator were not hit by section 40A(2)(b) absent proof of excessiveness. Case-Laws Income Tax Tue, 29 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65239