TaxTMI 
TaxTMI 
General
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....diture incurred by the assessee for the purposes of the business or profession.] ^14[Explanation 3.-For the removal of doubts, it is hereby clarified that the expression "expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law" under Explanation 1, shall include and shall be deemed to have always included the expenditure incurred by an assessee,- (i) for any purpose which is an offence under, or which is prohibited by, any law for the time being in force, in India or outside India; or (ii) to provide any benefit or perquisite, in whatever form, to a person, whether or not carrying on a business or exercising a profession, and acceptance of such benefit or perquisite by such person is in violation of any law or rule or regulation or guideline, as the case may be, for the time being in force, governing the conduct of such person; or (iii) to compound an offence under any law for the time being in force, in India or ^15[outside India; or (iv) to settle proceedings initiated in relation to contravention under such law as may be notified by the Central Government in the Official Gazette in this behalf.]....
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....ion 15 of the Finance Act, 1994 w.e.f. 01-04-1993 And was Amended vide Section 4 of the Finance (No. 2) Act, 1962 w.e.f. 01-04-1962 And was Amended vide Section 12 of the Finance Act, 1965 w.e.f. 01-04-1965 And was Amended vide Section 4 of the Taxation Laws (Amendment) Act, 1967 w.e.f. 01-10-1967 And was Amended vide Section 6 of the Finance Act, 1968 w.e.f. 01-04-1968 And was Amended vide Section 10 of the Finance Act, 1970 w.e.f. 01-04-1970 And was Amended vide Section 9 of the Finance Act, 1976 w.e.f. 01-04-1977 And was Amended vide Section 17 of the Finance Act, 1983 w.e.f. 01-04-1976/w.e.f. 01-04-1984 And was Amended vide Section 15 of the Finance Act, 1992 w.e.f. 01-04-199 4. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 1978 w.e.f. 01-04-1979 Earlier, Inserted vide Section 10 of the Finance Act, 1970 w.e.f. 01-04-1970 And was Omitted vide Section 9 of the Finance Act, 1976 w.e.f. 01-04-1977 "(2B) Notwithstanding anything contained in this section, no allowance shall be made in respect of expenditure in the nature of entertainment expenditure incurre....
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.... cent. of the turnover or, as the case may be, gross receipts of the business or profession 15% of the adjusted expenditure. Explanation : For the purposes of this sub-section, - (a) "adjusted expenditure" means the aggregate expenditure incurred by the assessee on advertisement, publicity and sales promotion in India as reduced by so much of such expenditure as is not allowed under sub-section (1) and as further reduced by so much of such expenditure as is not allowed under sub-section (3); (b) "turnover" and "gross receipts" means turnover or gross receipts, as the case may be, as reduced by any discount or rebate allowed by the assessee." And was Inserted vide Section 17 of the Finance Act, 1983 w.e.f. 01-04-1984 7. Omitted vide Section 11 of the Finance Act, 1985 w.e.f. 01-04-1986 before it was read as, "(3B) The expenditure referred to in sub-section (3A) is that incurred on - (i) advertisement, publicity an sales promotion; or (ii) running and maintenance of aircraft and motor cars; or (iii) payments made to hotels. Explanation : For the purposes of sub-sections (3A) and (....
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....he number of copies of such newspaper circulated during a year by the total number of days on which such newspaper was published in that year." And was Inserted vide Section 17 of the Finance Act, 1983 w.e.f. 01-04-1984 8. Omitted vide Section 11 of the Finance Act, 1985 w.e.f. 01-04-1986 before it was read as, "(3C) Nothing contained in sub-section (3A) shall apply in respect of expenditure incurred by an assessee, being a domestic company as defined in clause (2) of section 80B, or a person (other than a company), who is resident in India in respect of expenditure incurred wholly and exclusively on - (i) advertisement, publicity and sales promotion outside India in respect of the goods, services or facilities which the assessee deals in or provides in the course of his business; (ii) running and maintenance of motor cars in any branch, office or agency maintained outsaid India for the promotion, of the sale outside India of such goods, services or facilities." Earlier, Inserted vide Section 8 of the Finance Act, 1978 w.e.f. 01-04-1979 And was Omitted vide Section 10 of the Finance (No. 2) Act, 1980 w.e.f. 01....
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.... 1971, or any subsequent assessment year, no allowance shall be made in respect of depreciation of any building used as a guest-house or depreciation of any assets in a guest-house: Provided that the aggregate of the expenditure referred to in clause (i) and the amount of any depreciation referred to in clause (ii) shall, for the purposes of this sub-section, be reduced by the amount, if any, received from persons using the guest-house : Provided further that nothing in this sub-section shall apply in relation to any guest-house maintained as a holiday home if such guest-house- (a) is maintained by an assessee who has throughout the previous year employed not less than one hundred whole-time employees in a business or profession carried on by him; and (b) is intended for the exclusive use of such employees while on leave. Explanation.-For the purposes of this sub-section,- (i) residential accommodation in the nature of a guest-house shall include accommodation hired or reserved by the assessee in a hotel for a period exceeding one hundred and eighty-two days during the previous year; and (ii) the expenditure incurred on....