banner_ad

A doubt in tax s.44

Tax queries 781 views 2 replies

Sec.44 regarding insurance business clarifies that  "any expenditure which is not admissible under sec.30 to 43B is disallowed under First Schedule read with S.44." 

But in the case, GIC of India vs.CIT, Supreme Court has held that "amount set apart is not an expenditure and therefore the question of disallowing what is not an expenditure does not arise", whereas u/s.40A(7), amount set as provision for payment of gratuity is disallowed.

what is the correct interpretation of the above 3 statements.

plz clarify..

Replies (2)

Hi Sharadha,

 

Section 30 to 43B talks about specific expenditure which needs to be dealt with accordingly.

 

As per decision quoted Amt set aside is not an expenditure but is an appropriation for contingencies like transfer to genreal reserve whereas Amt set aside to meet the obligation of gratuity payable is certain and there is specific section 40A(7) which deals with the same.

 

Also Specific provision has overriding effect over general provision.

 

Thanks & Regards

 

Hitesh

 

 

 

THANK U HITESH..


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details