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| The Tax Publishers2020 TaxPub(DT) 1144 (Kol-Trib) INCOME TAX ACT, 1961
Section 37(1)
By obtaining club membership for a period of more than one year, there might be an advantage in the field of revenue and not for obtaining any capital asset or obtaining benefit in capital field. Therefore, entrance fees paid to club for taking corporate membership was allowable as revenue expenditure.
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Capital or revenue expenditure - Entrance fees paid to club for taking corporate membership - -
Assessee-company claimed deduction of entrance fees paid to club for taking corporate membership AO held the same to be of capital in nature.Held: By obtaining club membership for a period of more than one year, there might be an advantage in the field of revenue and not for obtaining any capital asset or obtaining benefit in capital field. Therefore, entrance fees paid to club for taking corporate membership was allowable as revenue expenditure.
Relied:CIT v. Samtel Color Ltd. [2009-TMI-32263-Delhi High Court] vide judgment dated 30-1-2009 in ITA No. 1153 of 2008 : 2010 TaxPub(DT) 330 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
section 40(a)(ia)
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