Friday 27 June 2014

No disallowance of lawful exp. merely due to non-compliance with provisions of Companies Act

IT : The offence or prohibition under law referred to in Explanation to section 37(1) should be judged with reference to the 'purpose' of the expenditure on a standalone basis divorced from the fulfilment or otherwise of the procedural formalities ( for example requirements of Companies Act like Board's consent, general body approval, Central Govt's approval) attached with and necessary for the incurring of such expenditure.


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