https://www.taxtmi.com/caselaws?id=784040 Indirect business expenditure was disallowed on the ground that no revenue was earned. The ITAT held that statutory audit fees, rent, rates and taxes, professional fees, and property maintenance are inherently required to maintain corporate existence and therefore constitute business expenditure allowable under s. 37(1), notwithstanding nil receipts; the disallowance was rejected. Notional interest was added on interest-free advances to a director. The ITAT held that where advances were made in earlier years out of share capital and free reserves, with no use of borrowed funds and no applicability of s. 2(22)(e) or s. 92BA, taxation must be confined to real income and not hypothetical accrual; the notional interest addition was deleted. A protective addition for a property gift was set aside since the amount was already added back and accepted in the subsequent year; Revenue's appeal was dismissed. en-us Wed, 17 Dec 2025 00:00:00 +0530 Wed, 31 Dec 2025 16:56:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784040 Indirect business expenditure was disallowed on the ground that no revenue was earned. The ITAT held that statutory audit fees, rent, rates and taxes, professional fees, and property maintenance are inherently required to maintain corporate existence and therefore constitute business expenditure allowable under s. 37(1), notwithstanding nil receipts; the disallowance was rejected. Notional interest was added on interest-free advances to a director. The ITAT held that where advances were made in earlier years out of share capital and free reserves, with no use of borrowed funds and no applicability of s. 2(22)(e) or s. 92BA, taxation must be confined to real income and not hypothetical accrual; the notional interest addition was deleted. A protective addition for a property gift was set aside since the amount was already added back and accepted in the subsequent year; Revenue's appeal was dismissed. Case-Laws Income Tax Wed, 17 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784040