Us 37/1

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SAMIR DESAI (Querist)
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07 February 2012 Dear Sir,

my company is Pvt. Ltd. & he make this year profit arount 2500000,than i make invest ment on director name & give cheque from company than i get deduction u/s 37(1) in compant return

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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07 February 2012 Dear friend, the investment made on the name of directors will be deemed to be dividend under section 2(22) of the Income Tax Act,1961. section 37(1) deal with expenses which are for the business of the company which are not considered under section 30 to 36 of the Income Tax act,1961. You have made investment and not any expenses for the business of the company.