https://www.taxtmi.com/caselaws?id=379136 Ad hoc disallowance of expenses requires material showing that the expenditure was bogus or not for business purposes; where vouchers support the claim and no specific defect is found, the disallowance is unsustainable. Section 41(1) applies only if remission or cessation of liability occurs during the relevant year; a liability continuing in the books and squared up later does not trigger taxation in that year. Interest paid for delayed deposit of service tax is compensatory in nature and does not fall within section 40(a)(ii), which concerns taxes on business profits. en-us Wed, 24 Apr 2019 00:00:00 +0530 Sat, 27 Apr 2019 10:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=379136 Ad hoc disallowance of expenses requires material showing that the expenditure was bogus or not for business purposes; where vouchers support the claim and no specific defect is found, the disallowance is unsustainable. Section 41(1) applies only if remission or cessation of liability occurs during the relevant year; a liability continuing in the books and squared up later does not trigger taxation in that year. Interest paid for delayed deposit of service tax is compensatory in nature and does not fall within section 40(a)(ii), which concerns taxes on business profits. Case-Laws Income Tax Wed, 24 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=379136