https://www.taxtmi.com/caselaws?id=221148 The ITAT affirmed the CIT(A)'s decision to allow the expenditure of Rs.1,87,61,273 under section 37(1) of the IT Act for a Government company, ruling that the provision for interest, though not falling under section 36(1)(iii) due to the absence of borrowings, was a contractual liability incurred for business purposes in compliance with Government regulations. The Revenue's appeal was dismissed, and the allowance of the expenditure was upheld, emphasizing that it was deductible under section 37(1) despite not meeting the criteria of section 36(1)(iii). en-us Fri, 09 Nov 2012 00:00:00 +0530 Mon, 25 Feb 2013 10:10:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221148 The ITAT affirmed the CIT(A)'s decision to allow the expenditure of Rs.1,87,61,273 under section 37(1) of the IT Act for a Government company, ruling that the provision for interest, though not falling under section 36(1)(iii) due to the absence of borrowings, was a contractual liability incurred for business purposes in compliance with Government regulations. The Revenue's appeal was dismissed, and the allowance of the expenditure was upheld, emphasizing that it was deductible under section 37(1) despite not meeting the criteria of section 36(1)(iii). Case-Laws Income Tax Fri, 09 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221148