2009 (2) TMI 82 - HC - Income Tax

Whether Tribunal was right in law in directing to allow 50% of messing expenses in respect of employees inspite of the fact that provisions of section 37(4) and 37(5) of the Act clearly prohibit allowance of such expenditure- issue stands concluded by the judgment of the Apex Court in the case of Britannia Industries Ltd. in view of that, question is therefore answered in the Negative

Summary

The Gujarat High Court in 2009 ruled on a case concerning messing expenses for employees in relation to sections 37(4) and 37(5) of the Income Tax Act. The court referred to a previous judgment in Britannia Industries Ltd. Vs. CIT (2005) 278 ITR 546 (SC) and decided against allowing the expenses. The appeal was dismissed with no costs.