9911796707
TMI Blog2024 (8) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... e had spent Rs. 1,04,318/- to Golf Club for food and liquor business meeting in DLF Club Gurgaon. The assessee was entitled to get deduction of Rs. 1,04,318/-. In view of abovesaid material facts and well settled principle of law the order of AO is liable to be set aside and order of the CIT(A) is modified by holding that the assessee is entitled to get allowable expenses - Appeal of the assessee is allowed - SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER For the Assessee : Shri Ved Jain, Advocate Ms Uma Upadhaya , CA For the Department : Shri Vivek Vardhan, Sr. DR ORDER PER VIMAL KUMAR, JM The appeal is against order dated 30.08.2023 of the Learned Commissioner of Income Tax (Appeals) through which appeal w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was in name of partner of the firm Shri Sanjay Surana was mentioned. The expenditure was purely personal in nature. Show cause notice to the assessee dated 16.12.2022 was issued. Assessee replied vide letter dated 20.12.2022. The assessee claimed that amount of Rs. 1,04,318/- towards business promotion paid to DLF Gold Resorts Ltd. was incurred included liquor and food for business meetings in the DLF club Gurgaon. The location of the place is near residence of partner and it saved times of commuting to any other place for business meeting. The expenses incurred were exclusively and completely were related to business meeting only. Learned AO vide order dated 28.12.2022 re-computed total income of the assessee as under:- Sl. No. Description ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture as revenue exclusively for purpose of business liable under section 37(1) of the Act. Learned AO held that Government is discouraging consumption of alcohol. The assessee claimed Rs. 1,04,318/- on account of payment to DLF Golf Resorts Limited which included expenses for food, liquor for business meeting under section 37(1) of Act. Assessee claimed that all the expenses were incurred during the previous year relevant to assessment year 2021-22 and accounted for properly and fully audited also. None of the expenses were of personal in nature. All the expenditure were incurred for purpose of business. Hon ble Supreme Court of India in the case of CIT v/s Madras Auto Services (P) Ltd. (1998) 233 ITR 468 SC summarised the general principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Expenditure has been laid down or expended wholly and exclusively for the purposes of business or profession of the assessee; (v) Expenditure has not been incurred for any purpose which is an offence or which is prohibited by law. 6. It is material fact that the assessee had business agreement with Adlec/Novateur Electrical Digital System Pvt. Ltd. The expenditure was incurred for gaining advantage to assessee s business by serving dinner and liquor to employees of its principal Adlec/Novateur. Learned CIT(A) by reference to relation between income and expenditure opined the possibility of the income earning activity and expenditure and granted allowance had been reached to 6.34% of Rs. 20,00,000/- which comes to Rs. 1,26,835/-. Earning o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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