https://www.taxtmi.com/caselaws?id=756729 The Bombay HC upheld the allowability of welfare payments made by the assessee to various institutions under six heads as revenue expenditure under Section 37(1). The court rejected the Revenue's attempt to disallow these payments under Section 40A(9), finding that the payments were made for wider local welfare measures that boosted the assessee's business presence and enabled harmonious factory operations. Despite being mentioned in the Memorandum of Settlement with the Workmen's Union, these payments retained their character as business expenditure with commercial linkage. The court confirmed concurrent findings by CIT-A and Tribunal that Section 40A(9) had no application to these facts, as the payments were not made under industrial dispute laws but were legitimate business expenses generating local goodwill and harmony benefiting the assessee's business operations. en-us Tue, 30 Jul 2024 00:00:00 +0530 Tue, 18 Mar 2025 17:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756729 The Bombay HC upheld the allowability of welfare payments made by the assessee to various institutions under six heads as revenue expenditure under Section 37(1). The court rejected the Revenue's attempt to disallow these payments under Section 40A(9), finding that the payments were made for wider local welfare measures that boosted the assessee's business presence and enabled harmonious factory operations. Despite being mentioned in the Memorandum of Settlement with the Workmen's Union, these payments retained their character as business expenditure with commercial linkage. The court confirmed concurrent findings by CIT-A and Tribunal that Section 40A(9) had no application to these facts, as the payments were not made under industrial dispute laws but were legitimate business expenses generating local goodwill and harmony benefiting the assessee's business operations. Case-Laws Income Tax Tue, 30 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756729