https://www.taxtmi.com/caselaws?id=10669 In computing taxable income of an insurance business under section 44 read with rule 5(a) of the First Schedule, only adjustments that qualify as inadmissible expenditure or allowance under sections 30 to 43A can be made; a provision for taxation is neither actual expenditure nor an allowance, so it cannot be added back. A reserve for bad and doubtful debts likewise falls outside rule 5(a) and cannot be added back to insurance profits. The deletion of disallowance for entertainment allowance and customary hospitality was also upheld on the applicable legal position. The referred questions were answered against the Revenue and in favour of the assessee. en-us Thu, 27 May 2004 00:00:00 +0530 Tue, 31 Jan 2017 13:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10669 In computing taxable income of an insurance business under section 44 read with rule 5(a) of the First Schedule, only adjustments that qualify as inadmissible expenditure or allowance under sections 30 to 43A can be made; a provision for taxation is neither actual expenditure nor an allowance, so it cannot be added back. A reserve for bad and doubtful debts likewise falls outside rule 5(a) and cannot be added back to insurance profits. The deletion of disallowance for entertainment allowance and customary hospitality was also upheld on the applicable legal position. The referred questions were answered against the Revenue and in favour of the assessee. Case-Laws Income Tax Thu, 27 May 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10669