Expenditure - Law Dictionary Search Results
Home Dictionary Name: expenditure Page 1 of about 89 results (0.002 seconds)Capital expenditure and revenue expenditure
Capital expenditure and revenue expenditure, in cases where the expenditure is made for the initial outlay or for extension of a business or a substantial replacement of the equipment, there is no doubt that it is 'capital expenditure'. If on the other hand it is made not for the purpose of bringing into existence any such asset or advantage but for running the business or working it with a view to produce the profits it is a 'revenue expenditure', Assam Bengal Cement Co. v. C.I.T, AIR 1955 SC 89 (96). [Income-tax Act, 1922, s. 10(2)(xv)]...
Entertainment expenditure
Entertainment expenditure, the expression 'enter-tainment expenditure' is of wide import. However, in the context of disallowance of 'entertainment expenditure' as a business expenditure by virtue of sub-s. (2A) of s. 37, the word 'entertainment' must be construed strictly and not expansively. Ordinarily, 'entertainment' connotes something which may be beneficial for the mental or physical well being but is not essential or indispensable for human existence. A bare necessity, like ordinary meal, is essential or indispensable and, therefore, is not 'entertainment' the expenditure incurred in extending customary hospitality by offering ordinary meals as a bare necessity, is not 'entertainment expenditure', C.I.T. v. Patel Bros., (1995) 4 SCC 485: AIR 1995 SC 1829 (1833). [Income-tax Act, (43 of 1961), s. 37(2A)]...
Expenditure
Expenditure, the term 'expenditure' is not necess-arily confined to the money which has been actually paid out. It covers a liability which has accrued or which has been incurred although it may have to be discharged at a future date. However, a contingent liability which may have to be discharged in future cannot be considered as expenditure, Madras Industrial Investment Corpn. Ltd. v. CIT, (1997) 4 SCC 666: AIR 1997 SC 2063.'Expenditure' is equal to 'expense' and 'expense is money laid out by calculation and intention though many uses of the word this element may not be present, as when we speak of a joke at another's expense. But the idea of 'spending in the sense of' paying out or away money is the primary meaning and it is with that meaning that we are concerned. 'Expenditure is thus what is 'paid out or away' and is something which is gone irretrievably, Indian Molasser Co. v. C.I.T., AIR 1959 SC 1049 (1058). [Income-tax Act, 1922, s. 10(2)(xv)]...
Disputed chargeable expenditure
Disputed chargeable expenditure, 'disputed chargeable expenditure', in relation to an assess-ment year, means the whole or so much of the chargeable expenditure as is relatable to the disputed tax. [Kar Vivad Samadhan Scheme, 1998, s. 87(c)]...
Expenditure tax
Expenditure tax, See Federation of Hotel & Restaurant Assoc. v. Union of India, (1989) 3 SCC 634: AIR 1990 SC 1637.Expenditure-tax or 'tax' means the tax chargeable under the provisions of this Act. [Expenditure Tax Act, 1987 (35 of 1987), s. 2(5)]...
Revenue expenditure
Revenue expenditure, if expenditure is made not for the purpose of bringing into existence any such assets or advantage but for running the business or working it with a view to produce the profits it is a revenue expenditure, Assam Bengal Cement Co. Ltd. v. CIT, AIR 1955 SC 89 (96). [Income Tax Act, 1922, s. 10(2) (xv)]...
expenditure
expenditure 1 : the act or process of paying out 2 : something paid out see also capital expenditure ...
capital expenditure
capital expenditure : an amount paid out that creates a long-term benefit (as one lasting beyond the taxable year) ;esp : costs that are incurred in the acquisition or improvement of property (as capital assets) or that are otherwise chargeable to a capital account NOTE: Capital expenditures are not deductible for income tax purposes. They are generally added to the property's basis. ...
Wholly and exclusively
Wholly and exclusively, the expression 'wholly and exclusively' used in s. 10(2)(xv) of the Income Tax Act, 1922 does not mean 'necessarily'. Ordinarily it is for the assessee to decide whether any expenditure should be incurred in the course of his or its business. Such expenditure may be incurred voluntarily and without any necessity and if it is incurred for promoting the business and to earn profits, the assessee can claim deduction under s. 10(2)(xv) of the Act even though there was no compelling necessity to incur such expenditure. It is relevant to refer at this stage to the legislative history of s. 37 of the Income Tax Act, 1961 which corresponds to s. 10(2)(xv) of the Income Tax Act, 1922. An attempt was made in the Income Tax Bill of 1961 to lay down the 'necessity' of the expenditure as a condition for claiming deduction under s. 37. S. 37(1) in the Bill read 'any expenditure . . . laid out or expended wholly, necessarily and exclusively for the purposes of the business or ...
Wholly and exclusively for purposes of such business
Wholly and exclusively for purposes of such business, the expenditure of a capital nature is certainly not an expenditure which is deductible for computing profits though it may be an expenditure wholly and exclusively laid out for the purposes of the business etc. If this expenditure is not a capital nature but of a revenue nature it is certainly deductible under this clause. All other expenditure which is not included in (i) or (xiv) or which is not at the very inception deductible as an overriding charges on the whole of the profit-making apparatus will be deductible if it is laid out or expenditure wholly and exclusively for pur-poses of such business, C.I.T. Kerala v. Travancere Sugar and Chemicals Ltd., AIR 1973 SC 982 (986). [Income Tax Act (11 of 1922), s. 10(2) (xv)]...
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