The Tax Publishers2020 TaxPub(DT) 2175 (Sur-Trib)

INCOME TAX ACT, 1961

Section 37(1)

Where assessee incurred expenditure under staff welfare expense on account of purchase of washing machine for director and umbrellas given to selected staff, expenditure was in name of gifts, which could not be allowed as business expenses.

Business expenditure - Allowability - Staff welfare expenses -

Assessee claimed expenses as staff welfare, which were disallowed on allegation that same were allegedly incurred for gifts given to directors and staff. Held: Assessee incurred expenditure under staff welfare expenses on account of purchase of washing machine for director and umbrellas given to selected staff. Thus, expenditure was in name of gifts, which could not be allowed as business expenses. Tribunal also confirmed such disallowance in assessment year 2001-02 in assessee's own case.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 37(1)

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT