https://www.taxtmi.com/caselaws?id=770096 The HC allowed the appeal in favor of the assessee company regarding deduction of expenses under sections 28 and 37. The court held that expenditure incurred by the assessee to maintain its subsidiary company MMC during winding-up was deductible as commercial expediency, citing SC precedent in Delhi Safe Deposit Co. Ltd. The assessee held 27% equity in MMC and acted as managing agent until 1974. To protect goodwill and reputation, the board approved expenditure for MMC's maintenance, which was permissible as deduction. Regarding book profit computation under section 115J, the court ruled the Assessing Officer cannot probe accounts beyond statutory provisions, following SC precedent in Malayala Manorama Company Limited. en-us Fri, 02 May 2025 00:00:00 +0530 Tue, 06 May 2025 09:58:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770096 The HC allowed the appeal in favor of the assessee company regarding deduction of expenses under sections 28 and 37. The court held that expenditure incurred by the assessee to maintain its subsidiary company MMC during winding-up was deductible as commercial expediency, citing SC precedent in Delhi Safe Deposit Co. Ltd. The assessee held 27% equity in MMC and acted as managing agent until 1974. To protect goodwill and reputation, the board approved expenditure for MMC's maintenance, which was permissible as deduction. Regarding book profit computation under section 115J, the court ruled the Assessing Officer cannot probe accounts beyond statutory provisions, following SC precedent in Malayala Manorama Company Limited. Case-Laws Income Tax Fri, 02 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770096