Commercial expediency and ad hoc disallowance issues shape treatment of business expenditure and TDS claims

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Flood rehabilitation housing expenditure may qualify as business expenditure where incurred under a State Government memorandum for commercial expediency and long-term business benefit; that issue was remitted for fresh consideration in line with jurisdictional High Court rulings. Ad hoc disallowances of vehicle hire, transport charges and repairs to leasehold premises were deleted because the assessee produced bills, PANs, ledgers and other supporting records, and no objective basis for estimation was shown. Interest reflected in Form 26AS was not taxed on accrual absent reasonable certainty of receipt, and TDS credit was shifted to the year of actual offer. Customs duty liability crystallised on demand and was allowable on payment, infras.........