https://www.taxtmi.com/caselaws?id=186635 Mercantile liabilities are deductible when they crystallise, so productivity-linked wage expenditure based on a settlement reached before year-end remained allowable even though the formal memorandum was signed later. Sales incentive payments under a common promotional scheme were treated as revenue expenditure because they were incurred for business promotion and not shown to create an enduring benefit. An ad hoc disallowance under section 14A was curtailed to a nominal estimate where exempt income arose from surplus-fund investments and only minimal administrative effort was involved. Technical know-how expenditure was held revenue in nature, while computer/MIS items were allowed only according to their capital or consumable character. Inter-corporate deposit write-off, employee salary paid to a group-company employee, and the exclusion of short-term capital gain from book-profit adjustment under section 115JB were also recognised. en-us Thu, 30 Jun 2011 00:00:00 +0530 Sat, 24 Sep 2016 13:09:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186635 Mercantile liabilities are deductible when they crystallise, so productivity-linked wage expenditure based on a settlement reached before year-end remained allowable even though the formal memorandum was signed later. Sales incentive payments under a common promotional scheme were treated as revenue expenditure because they were incurred for business promotion and not shown to create an enduring benefit. An ad hoc disallowance under section 14A was curtailed to a nominal estimate where exempt income arose from surplus-fund investments and only minimal administrative effort was involved. Technical know-how expenditure was held revenue in nature, while computer/MIS items were allowed only according to their capital or consumable character. Inter-corporate deposit write-off, employee salary paid to a group-company employee, and the exclusion of short-term capital gain from book-profit adjustment under section 115JB were also recognised. Case-Laws Income Tax Thu, 30 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186635