1992 (11) TMI 41 - HC - Income Tax

Summary

The High Court of Delhi ruled that sales promotion expenses for providing meals, coffee, etc., to customers are considered entertainment expenses as per Explanation 2 to section 37(2A) of the Income-tax Act, 1961. The court held that such expenses are not allowable in law. The Department's appeal was upheld, and the expenses of Rs. 11,504 and Rs. 20,651 for the respective assessment years were deemed as entertainment expenditure.