https://www.taxtmi.com/caselaws?id=65256 Employee welfare expenditure, including employee clubs and schools for employees' children, qualifies for deduction under section 37(1) where it directly supports staff welfare and does not create a prohibited welfare fund under section 40A(9). Provision for genuinely identified dead stock and consistent write-off of consumable loose tools may be allowed, while tax-default interest, uncrystallised prior-period expenses and unsupported adjustments remain disallowable. Income from unilateral price-escalation claims does not accrue without customer acceptance. Exchange losses on revenue-import liabilities are deductible to the extent attributable to raw materials and components. Export-profit relief requires a correct turnover base, excluding non-sale receipts but including relevant sales and scrap receipts; unapproved remittances do not qualify. en-us Fri, 22 Jul 2005 00:00:00 +0530 Thu, 02 May 2024 13:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65256 Employee welfare expenditure, including employee clubs and schools for employees' children, qualifies for deduction under section 37(1) where it directly supports staff welfare and does not create a prohibited welfare fund under section 40A(9). Provision for genuinely identified dead stock and consistent write-off of consumable loose tools may be allowed, while tax-default interest, uncrystallised prior-period expenses and unsupported adjustments remain disallowable. Income from unilateral price-escalation claims does not accrue without customer acceptance. Exchange losses on revenue-import liabilities are deductible to the extent attributable to raw materials and components. Export-profit relief requires a correct turnover base, excluding non-sale receipts but including relevant sales and scrap receipts; unapproved remittances do not qualify. Case-Laws Income Tax Fri, 22 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65256