Disallowance of expenditure on advertisements in souvenirs. Attention is invited to Boarad's Circular No.19 (F.No. 9/20/69-IT(AII) - See [1969] 73 ITR (St.) 18 dated the 13 June, 1969, on the above subject. - Income Tax - 200/1976

Disallowance of expenditure on advertisements in souvenirs. Attention is invited to Boarad's Circular No.19 (F.No. 9/20/69-IT(AII) - See [1969] 73 ITR (St.) 18 dated the 13 June, 1969, on the above subject. Circular No. 200 Dated 28/6/1976 To All Commissioners of Income-tax. Sir, Subject: Disallowance of expenditure on advertisements in souvenirs. Attention is invited to Boarad's Circular No.19 (F.No. 9/20/69-IT(AII) See [1969] 73 ITR (St.) 18 dated the 13 June, 1969, on the above subject. 2. It has been represented to the Board that expenditure on advertisments in souvenirs is expenditute incurred wholly and exclusively for the purpose of business and as such in allowable as a deduction under section 37(1) of the Income-tax Act, 1961. Disallowance of a part of expenditure on advertisement in souvenirs by the Income-tax Officer on the ground that it is in the nature of donation has caused hardship to the assessees and has caused avoidable litigation. 3. The Board has re-examined the question in the light of the representations made. It is clarified that no distinction need be drawn between expenditure on advertisements in souvenirs and other types of advertisements. Claims in respect of expenditure on advertisement in souvenirs may be allowed if the conditions laid down in rule 6B of the Income-tax Rules, 1962 are fulfilled and there is evidence that the expenditure has been incurred. Yours faithfully, (Sd.) T.P. Jhunjhunwala, Secretary, Central Board of Direct Taxes.