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TMI Blog2022 (6) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... Act") issued by DCIT, CPC, Bangalore dated 03.07.2019. 2. At the outset, we find that there is a brief delay of 2 days in filing of this appeal. The assessee has filed a condonation petition. On perusal of the same, we are convinced that the assessee was prevented by sufficient cause from filing of the appeal in time. Hence, we condone the brief delay of 2 days and admit this appeal for adjudication. 3. The issue in appeal before us relates to adjustment made in the processing of return by CPC, Bangalore in respect of claim made by the assessee towards membership and subscription expenses of Rs. 18,39,466/- incurred at clubs being entrance fees and subscription for club services and facilities used. 4. Before us, Mr. Abhishek Murali, CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred Rs. 5,79,370/-, Rs. 10,46,016/- and Rs. 2,14,080/- respectively. It was further contended by the assessee that the Young President Organization is a world wide body where the young presidents of organization across the globe are members and through membership the company establish contacts with major business heads across the globe. The club memberships helps the organization to grow in terms of its revenue and profits. Similarly, was the case with membership in other two institutions namely, Kodaikanal Club and Madras Cricket Club. It was also contended by the Ld Counsel that by incurring these expenses of membership and subscription of clubs, the financial results of the company had significantly improved. Ld. Counsel relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. 8. Ld. Counsel of the assessee reiterated the submissions made by him before the Ld. CIT(A). In the course of hearing, in addition to the judgments relied upon by the counsel of the assessee before the Ld. CIT(A), he placed on record judgments of Hon'ble High Court of Karnataka in the case of Ingersoll-Rand (India) Ltd vs CIT (2020) 122 taxmann.com 85 (Kar) and by Hon'ble High Court of Kerala in the case of Apollo Tyres Ltd vs DCIT (2021) 130 Taxmann.com 296 (Kerala). Ld. Sr. DR. supported the decision of Ld. CIT(A) and relied upon the decision of Hon'ble High Court of Madras in the case of L. Jairam Parwani vs DCIT (2018) 93 taxmann.com 291 (Mad). 9. We have heard the rival contentions, considered the material placed on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n these judgments is that expenses incurred towards club membership fees and subscription for employees have been held to be business expenditure allowable u/s. 37(1) of the Act. Expenditure incurred for availing services in the club have been held to be not allowable as business expenditure within the meaning of section 37(1) of the Act. In view of these facts and judicial precedents, it is important to ascertain whether expenses incurred by the assessee are claimed as deductable which are incurred in the course of business towards club membership or whether they are in respect of availing of services and facilities at the club. It is also required to ascertain whether they are of personal nature or otherwise for the purpose of allowance. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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