Expenses Allowed in Computing Taxable Profit of a Business:

1. Cost of Goods Sold: This includes the cost of raw materials, production costs, and other expenses related to the manufacturing or production of goods.

2. Operating Expenses: This includes expenses incurred in the ordinary course of business, such as rent, salaries, utilities, insurance, and advertising.

3. Depreciation: This is the systematic allocation of the cost of an asset over its useful life. It is allowed as an expense, as assets lose value over time due to wear and tear, obsolescence, or other factors.

4. Interest Expense: This is the cost of borrowing money, such as interest on loans, credit lines, or other forms of debt.

5. Bad Debts: If a business is unable to collect payment from a customer, it may write off the debt as a bad debt expense.

6. Repairs and Maintenance: This includes expenses incurred to keep assets in good working condition, such as repairs to machinery or maintenance of buildings.

Expenses or Losses Not Admissible:

1. Personal Expenses: Any expenses that are not related to the business, such as personal travel or entertainment, are not admissible.

2. Capital Expenses: Expenses that are incurred to acquire or improve capital assets, such as buildings, land, or equipment, are not deductible as an expense. Instead, they must be capitalized and depreciated over their useful life.

3. Fines and Penalties: Any fines or penalties imposed by regulatory bodies or government agencies are not deductible.

4. Political Contributions: Contributions to political parties or candidates are not deductible as an expense.

5. Dividends: Dividends paid to shareholders are not deductible as an expense.

6. Losses from Illegal Activities: Any losses incurred from illegal activities, such as fraud or embezzlement, are not deductible as an expense.

In conclusion, it is important for businesses to keep accurate records of their expenses and ensure that only allowable expenses are claimed. This helps to minimize tax liabilities and avoid penalties for incorrect tax filings.