1987 (8) TMI 49 - HC - Income Tax

Summary

The High Court of Andhra Pradesh ruled in favor of the assessee, allowing the expenditure of Rs. 77,087 for giving silver mementoes to shareholders and directors during the company's silver jubilee celebrations as a business expense under section 37 of the Income-tax Act. The court found a causal connection between the business carried on by the assessee and the recipients of the mementoes, rejecting the Revenue's argument against the deduction.