https://www.taxtmi.com/caselaws?id=326757 Statutory contributions made under a bank's bye-laws to designated welfare and development funds were held deductible as business expenditure because they were compulsory, incurred in the course of business, and spent wholly for business purposes under section 37(1). A payment linked to profits did not lose its character as expenditure. By contrast, a fresh claim for loss on sale of securities, raised for the first time in response to reassessment notice, was not entertainable because reassessment cannot be used to reopen an issue not covered by the original notice; the rule in Sun Engineering applied. The assessee therefore succeeded only on the fund contributions, not on the securities loss claim. en-us Mon, 29 Feb 2016 00:00:00 +0530 Sat, 30 Apr 2016 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326757 Statutory contributions made under a bank's bye-laws to designated welfare and development funds were held deductible as business expenditure because they were compulsory, incurred in the course of business, and spent wholly for business purposes under section 37(1). A payment linked to profits did not lose its character as expenditure. By contrast, a fresh claim for loss on sale of securities, raised for the first time in response to reassessment notice, was not entertainable because reassessment cannot be used to reopen an issue not covered by the original notice; the rule in Sun Engineering applied. The assessee therefore succeeded only on the fund contributions, not on the securities loss claim. Case-Laws Income Tax Mon, 29 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326757