https://www.taxtmi.com/caselaws?id=443400 The Tribunal dismissed the revenue's appeal, affirming the CIT(A)'s decision that the expenditure of Rs. 38,12,22,446/- was allowable as a business expense. The expenditure was deemed closely related to business activities and incurred due to commercial expediency, meeting the criteria under section 37(1) of the Income Tax Act. The payment to distributors to cover service tax liability under new GST rules was essential for business operations and subsequently written off as bad debts. The Tribunal found no reason to interfere with the CIT(A)'s findings. en-us Mon, 08 May 2023 00:00:00 +0530 Fri, 22 Sep 2023 09:12:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=443400 The Tribunal dismissed the revenue's appeal, affirming the CIT(A)'s decision that the expenditure of Rs. 38,12,22,446/- was allowable as a business expense. The expenditure was deemed closely related to business activities and incurred due to commercial expediency, meeting the criteria under section 37(1) of the Income Tax Act. The payment to distributors to cover service tax liability under new GST rules was essential for business operations and subsequently written off as bad debts. The Tribunal found no reason to interfere with the CIT(A)'s findings. Case-Laws Income Tax Mon, 08 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=443400