Meaning of “Allowed”

Case Name : Associated capsule (p.) Ltd. V. Dy. Cit 

Citation : [2011] 197 taxman 84/237 ctr 408/332 itr 42/9 taxmann.Com 63 (bom.)

Court : Bombay high court

Section : 80-IA

Meaning : The word ‘allowed’ occurring in section 80-ia(9) is relatable to allowing the deduction that is computed. The word ‘allowed’ cannot be equated with the word ‘qualify’. Since section 80-ia(9) uses the words ‘shall not be allowed’, the section seeks to restrict the allowance of deduction and not the computation of deduction under any other section under heading ‘c’ of chapter vi-a.

Case Name : Cit v. L.W. Russel

Citation : [1964] 53 itr 91 (sc)

Court : Supreme court

Section :  15

Meaning : The word ‘allowed’ under explanation 1 to section 7 of the 1922 act is of wider connotation and any credit made in the employer’s account is covered thereby. The said expression in the legal terminology is equivalent to ‘fixed, taken into account, set apart, granted’. It takes in perquisites given in cash or in kind or in money on money’s worth and also amenities which are not convertible into money.

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