India - Income Tax Act 2010 - Saarc

S. 37 I.T. ACT, 1961 1.24866[(v) where such debt or part of debt relates to advances made by anassessee to which clause (viia) of sub-section (1) applies, no suchdeduction shall be allowed unless the assessee has debited the amountof such debt or part of debt in that previous year to the provision forbad and doubtful debts account made under that clause.]General.6737.68(1) 69 Any expenditure 70 (not being expenditure of the nature describedin sections 30 to 36 71 [***] and not being in the nature of capital expenditure72 or personal expenses of the assessee), laid out or expended whollyand exclusively 72 for the purposes of the business 72 or profession shall be allowedin computing the income chargeable under the head “Profits and gains ofbusiness or profession”.73[Explanation.—For the removal of doubts, it is hereby declared that anyexpenditure incurred by an assessee for any purpose which is an offence or66. Substituted by the Finance Act, 1997, w.r.e.f. 1-4-1992. Prior to its substitution, clause (v),as inserted by the Finance Act, 1985, w.e.f. 1-4-1985, read as under :“(v) where such debt or part of debt relates to advances made by a bank to which clause(viia) of sub-section (1) applies, no such deduction shall be allowed unless the bankhas debited the amount of such debt or part of debt in that previous year to theprovision for bad and doubtful debts account made under that clause.”67. See rules 9A and 9B for computation of deduction in respect of expenditure on productionof feature films/expenditure on acquisition of distribution rights of film.68. See also Letter [F. No. 27(30)-IT/59], dated 6-7-1959, Letter [F.No. 9/54/64-IT(A-I)], dated2-9-1964, Letter [F. No. 9/56/66-IT(A-I)], dated 17-1-1967, Letter [F.No. 9/23/67-IT(A-I)], dated 6-7-1967, Circular No. 5-P(XIV-I), dated 28-9-1963, Letter [F. No. 10/67/65-IT(A-I)], dated 26-8-1965, Circular No. 16, dated 18-9-1969, Circular No. 64(XI-2), dated27-1-1951, Circular No. 117, dated 22-8-1973, Letter [F. No. 10/25/63-IT(A-I)], dated18-6-1964, Letter [F. No. 204/42/77-IT(A-II)], dated 28-9-1977, Circular No. 1-D(IV-53),dated 20-1-1966, Circular No. 2, dated 8-3-1946, Letter [F. No. 35/5/65-IT(A-I)], dated1-7-1965, Circular No. 69(XIX-3), dated 27-11-1951, Circular No. 4, dated 19-6-1950, Letter[F. No. 10/80/64-IT(A-I)], dated 26-2-1965, Letter [F. No. 10/92/64-IT(A-I)], dated13-9-1965, Circular No. 3, dated 26-3-1946, Circular No. 22, dated 23-6-1943, Letter [F. No.10/16/63-IT(A-I)], dated 14-5-1963, Letter [F. No. 10/8/63-IT(A-I)], dated 14-10-1963,Letter [F. No. 27(24)-IT/59], dated 19-5-1959, Letter [F. No. 7/33/62-IT(A-I)], dated28-8-1963, Circular No. 2-P(XI-6), dated 23-8-1965, Letter [F. No. 13A/20/68-IT(A-II)],dated 3-10-1968, Letter [F. No. 32/6/62-IT(A-I)], dated 16-1-1963, Extracts from theminutes of the 16th meeting of CDTAC held on 2-2-1972, Instruction No. 943 [F. No. 204/15/76-IT(A-II)], dated 2-4-1976, Circular No. 420, dated 4-6-1985, Circular No. 2(40)/66-EAC, dated 16/17-1-1967, issued by the Ministry of Commerce, Circular No. 42 [C. No.19(7)-IT/42], dated 22-8-1942, Circular No. 36 [R. Disc. No. 54(13)-IT/43], dated 24-11-1943,Circular No. 48 [C. No. 19(22)-IT/42], dated 16-10-1942, Circular No. 192, dated 10-3-1976,Circular No. 316, dated 30-9-1981, Board’s Circular Letter No. 10/22/65 IT(A-I), dated24-5-1965, Circular No. 651, dated 11-6-1993, Circular No. 671, dated 27-10-1993, PressRelease, dated 23-1-2001, Instruction No. 12/2006, dated 14-12-2006 and Circular No.6/2007, dated 11-10-2007. For details, see Taxmann’s Master Guide to Income-tax Act.69. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.70. For the meaning of the term “expenditure”, see Taxmann’s Direct Taxes Manual, Vol. 3.71. “and section 80VV”, which was inserted by the Taxation Laws (Amendment) Act, 1975,w.e.f. 1-4-1976, omitted by the Finance Act, 1985, w.e.f. 1-4-1986.72. For the meaning of the expressions “capital expenditure”, “wholly and exclusively” and “forthe purposes of the business”, see Taxmann’s Direct Taxes Manual, Vol. 3.73. Inserted by the Finance (No. 2) Act, 1998, w.r.e.f. 1-4-1962.