https://www.taxtmi.com/caselaws?id=370981 Expenditure on stamp duty for cash purchases of stamps was held allowable because the assessee maintained a stamp duty ledger, recorded purchases settlement-wise, and the survey revealed no defect or adverse material showing bogus purchases or inflated consumption; the absence of vendor particulars alone was insufficient to disallow a statutory business expense. By contrast, stamp duty collected from customers was treated as a trading receipt because it was received in connection with the trading activity to meet the obligation of affixing stamps on contract notes, and its character was not changed by being credited to a liability account. The appeal succeeded on the expenditure issue and failed on the receipt-character issue. en-us Wed, 14 Nov 2018 00:00:00 +0530 Tue, 27 Nov 2018 06:39:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=370981 Expenditure on stamp duty for cash purchases of stamps was held allowable because the assessee maintained a stamp duty ledger, recorded purchases settlement-wise, and the survey revealed no defect or adverse material showing bogus purchases or inflated consumption; the absence of vendor particulars alone was insufficient to disallow a statutory business expense. By contrast, stamp duty collected from customers was treated as a trading receipt because it was received in connection with the trading activity to meet the obligation of affixing stamps on contract notes, and its character was not changed by being credited to a liability account. The appeal succeeded on the expenditure issue and failed on the receipt-character issue. Case-Laws Income Tax Wed, 14 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=370981