Payment to Clubs - Whether admissible under Income Tax Act

Assistant Commissioner of Income-tax, Central Cir. 14, Mumbai Versus Wockhardt Ltd.

The Mumbai ITAT has held that if the expenditure incurred by the assess is not in the nature of capital expenditure and the expenditure is incurred for the purpose of the business, the payment to clubs is an allowable expenditure u/s 37


The assessee claimed that the expenditure on the clubs is merely for the promotion of the business - Hon’ble Delhi High Court in the case of CIT vs Samtel Color Ltd (180 Taxman 82(Del) - Held that for qualifying of the deduction u/s 37 is that expenditure incurred should not be on capital account and it should be incurred for the purpose of the business - Accordingly decided in the favour of the assessee


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http://jantonyca.blogspot.com/2011/08/addition-of-time-barred-creditors-in-it.html