Tax Titbits

Abstract

Assessee company incurred expenses on providing street lights on roads to assessee's factory, besides an ambulance for medical emergencies for the residents of the village apart from outlay on public gardens. These were disallowed by the Assessing Officer as not directly relatable to assessee's business, but all the same, it was found to be deductible under section 37(1) concurrently by Commissioner (Appeals) and affirmed by the Tribunal in the light of duty expected of a corporate citizen in Addl. CIT v. Nicholas Piramal India Ltd. [2013] 27 ITR (Trib) 182 (Mumbai) following the decision of the Madras High Court in CIT v. Madras Refineries Ltd. [2004] 266 ITR 170 (Mad) followed in Cheran Engineering Corporation Ltd. v. CIT [1999] 238 ITR 892 (Mad) in respect of expenses on social welfare.