𝗧𝗲𝗹𝗮𝗻𝗴𝗮𝗻𝗮 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗗𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗘𝘅𝗽𝗲𝗻𝗱𝗶𝘁𝘂𝗿𝗲𝘀 𝗳𝗼𝗿 𝗢𝘃𝗲𝗿𝘀𝗲𝗲𝗶𝗻𝗴 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀 📢 The bench of Justice P. Sam Koshy and Justice Laxmi Narayana Alishetty stated,

"For an expenditure to qualify for deduction under Section 37, it must be incurred for the business carried on by the assessee and must be spent wholly and exclusively for its own business."

🔍 𝗙𝗮𝗰𝘁𝘀: - 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Pipelic Energy Software India Pvt. Ltd. - 𝗜𝘀𝘀𝘂𝗲: The appellant sought to deduct expenses incurred for overseeing its holding company's project as business losses.

- 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The Assessing Officer disallowed the claim, stating the expenses were not for the appellant's business. The CIT(A) initially allowed the expenses, but the Tribunal reversed this decision.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Telangana High Court upheld the Tribunal's ruling, confirming that expenses incurred for overseeing the holding company's project

cannot be considered revenue expenditures of the appellant and are not deductible under Section 37 of the Income Tax Act, 1961.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: - 𝗧𝗶𝘁𝗹𝗲: M/s Pipelic Energy Software India Pvt. Ltd. vs. The Deputy Commissioner of Income Tax - 𝗖𝗮𝘀𝗲 𝗡𝗼.: Income Tax Tribunal Appeal No. 561 Of 2006

📜 This ruling emphasizes the need for businesses to distinguish between their own operational expenses and those incurred for the benefit of a holding company. #arr4nirc #abhishekrajaram #TelanganaHighCourt #IncomeTax #LegalUpdate