Meaning of tax terms

Meaning of “Allowance”

Posted on by Prashant Thakur

Case Name : Sundaram industries ltd. Vs. CIT

Citation : [1998] 147 ctr (mad.) 290

Court : Madras high court

Section : 40

Meaning : Sub-clause (ii) of clause (c) of section 40 of the act employs the expression, ‘any expenditure or allowance in respect of any assets of the company’ and the word ‘allowance’ in the above provision would include statutory allowance.

Case Name : C.W.S. (India) ltd. Vs. CIT

Citation : [1994] 208 itr 649 (sc)

Court : Supreme court

Section : 40

Meaning : The expression ‘allowance’ in section 40(a)(v) and section 40a(5)(a)(ii) takes in depreciation allowance.

Prashant Thakur

The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.

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