https://www.taxtmi.com/caselaws?id=788851 Centralised common service costs shared under a genuine inter-company arrangement are deductible as business expenditure where the allocation is supported by agreement, applied on a reasonable basis, and shown to have business nexus. The expenditure cannot be disallowed merely because it was first incurred by another group entity and then cross-charged to the assessee, if there is no material to show that the services were sham, fictitious, excessive, personal, or capital in nature. The common service charges for functions such as finance, taxation, human resources, marketing, and IT support were therefore allowable under section 37(1) of the Income-tax Act, 1961. en-us Thu, 26 Mar 2026 00:00:00 +0530 Mon, 30 Mar 2026 08:48:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788851 Centralised common service costs shared under a genuine inter-company arrangement are deductible as business expenditure where the allocation is supported by agreement, applied on a reasonable basis, and shown to have business nexus. The expenditure cannot be disallowed merely because it was first incurred by another group entity and then cross-charged to the assessee, if there is no material to show that the services were sham, fictitious, excessive, personal, or capital in nature. The common service charges for functions such as finance, taxation, human resources, marketing, and IT support were therefore allowable under section 37(1) of the Income-tax Act, 1961. Case-Laws Income Tax Thu, 26 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788851