https://www.taxtmi.com/caselaws?id=326590 Business-related payments to a clearing corporation for trading defaults may qualify as deductible expenditure where they are compensatory, supported by debit notes, and incurred wholly and exclusively for business purposes rather than as penalties for prohibited conduct. Disallowance relating to exempt income should follow a principled computation, including restriction to an appropriate proportion of exempt income and consideration that it should not exceed exempt income. Software licences, antivirus, office applications, trading software, upgrades and rentals may be revenue expenditure where their validity is below one year; longer-term items may be capitalised with applicable depreciation. en-us Fri, 26 Feb 2016 00:00:00 +0530 Tue, 19 Apr 2016 18:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326590 Business-related payments to a clearing corporation for trading defaults may qualify as deductible expenditure where they are compensatory, supported by debit notes, and incurred wholly and exclusively for business purposes rather than as penalties for prohibited conduct. Disallowance relating to exempt income should follow a principled computation, including restriction to an appropriate proportion of exempt income and consideration that it should not exceed exempt income. Software licences, antivirus, office applications, trading software, upgrades and rentals may be revenue expenditure where their validity is below one year; longer-term items may be capitalised with applicable depreciation. Case-Laws Income Tax Fri, 26 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326590