1982 (7) TMI 10 - HC - Income Tax

Summary

The High Court of Madhya Pradesh held that providing meals and light refreshments to trade customers in the normal course of business does not amount to entertainment expenditure under section 37(2B) of the Income-tax Act. The court ruled in favor of the assessee, upholding the deletion of disallowances made by the ITO for the assessment years 1975-76 and 1976-77. The court's decision was based on previous rulings that hospitality provided as part of business obligations or long-standing customs does not constitute entertainment expenditure.