1979 (2) TMI 93 - HC - Income Tax

Banking Company, Business Expenditure, Expenditure In The Nature Of Entertainment Expenditure, Expenditure Incurred

Summary

The High Court of Karnataka ruled that the expenditure incurred by a banking company on serving coffee and tea to customers during business hours does not constitute entertainment expenditure under section 37(2B) of the Income-tax Act, 1961. The court held in favor of the assessee, stating that serving coffee and tea was a matter of courtesy and incidental to the business. The revenue's appeal was dismissed, and no costs were awarded.