The Tax Publishers2020 TaxPub(DT) 3532 (Kol-Trib)

INCOME TAX ACT, 1961

Section 37(1)

Periphery Development Expenses incurred by assessee engaged in mining activity were allowable as deductible under section 37(1).

Business expenditure - Periphery Development Expenses - Business purpose -

Assessee engaged in mining activities claimed deduction of Periphery Development Expenses. AO disallowed deduction alleging no business purpose. Held: Periphery Development Expenses were for the purposes of welfare of peoples residing nearby mining activities and it was responsibility of assessee carrying out the business of mining and it was mandatory for mining industry to look after development of the area in whcih mines were operating. Therefore, expenses were wholly and exclusively for business purpose and were to be allowed as deductible under section 37(1).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13, 2015-16 & 2016-17

INCOME TAX ACT, 1961

Section 37(1)

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