https://www.taxtmi.com/caselaws?id=181162 Bad debts relating to running chits were not allowed outright, because the claim had already been sent back for recomputation in line with earlier Tribunal directions and required fresh factual examination. Foreman dividend was treated as taxable, since the principle of mutuality was held inapplicable on the facts already decided in the assessee's case. Royalty payments were held allowable as business expenditure because they were incurred for legitimate business advantage and satisfied the test of expenditure laid out wholly for business purposes, so the disallowance under section 37(1) could not be sustained. en-us Fri, 11 Mar 2011 00:00:00 +0530 Fri, 08 Apr 2016 14:27:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181162 Bad debts relating to running chits were not allowed outright, because the claim had already been sent back for recomputation in line with earlier Tribunal directions and required fresh factual examination. Foreman dividend was treated as taxable, since the principle of mutuality was held inapplicable on the facts already decided in the assessee's case. Royalty payments were held allowable as business expenditure because they were incurred for legitimate business advantage and satisfied the test of expenditure laid out wholly for business purposes, so the disallowance under section 37(1) could not be sustained. Case-Laws Income Tax Fri, 11 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181162