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| The Tax Publishers2020 TaxPub(DT) 4424 (Chen-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where club expenses claimed by assessee were personal in nature and the assessee could not furnish any explanation to justify the same, the said expenses were rightly disallowed by AO.
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Business expenditure - Allowability - Club expenses - No business expediency
AO noted that assessee-company incurred club expenses. Since the said expenditure was personal in nature, AO asked the assessee to explain the same. However, since the assessee could not explain such expenditure, AO disallowed the same. Held: Assessee was asked to explain as to why club expenses (personal expenses) claimed by it should not be disallowed. However, the assessee could not furnish any explanation before the AO or before the CIT (A) or even before the Tribunal. Accordingly, the disallowance of personal expenses made by the AO and confirmed by the CIT (A) stood sustained.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 37(1)
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