The expenses incurred towards municipal taxes, maintenance, and ...

Guest-house expenses disallowed, food/beverage=entertainment. 50% dealer conference allowed. Presentation articles=ad expense.

Case Laws Income Tax

July 24, 2024

The expenses incurred towards municipal taxes, maintenance, and repairs of guest-house could not be allowed as a deduction, following the Supreme Court's decision in Britannia Industries Ltd. The expenditure on provision of food, beverages, and employee salaries for providing these at the rest/guest house was considered "entertainment expenditure" u/s 37(2A) and Explanation 2, and hence not deductible. However, 50% of the expenses incurred in organizing a conference for dealers were allowed as business expenditure. Expenses incurred in buying presentation articles were held as allowable deductions, being considered advertisement expenses.

View Source

← Previous Next →

The expenses incurred towards municipal taxes, maintenance, and ...

Guest-house expenses disallowed, food/beverage=entertainment. 50% dealer conference allowed. Presentation articles=ad expense.

Case Laws Income Tax

July 24, 2024

You may also like:

Valuation - includibility - advertisement expenses - the 50% is borne by the dealers/distributors which is the expenses of the dealers/distributors and the appellant is...

Income tax case involving disallowance of expenses incurred by a company for maintaining a guest house. The legal ownership of the guest house was with the company...

Disallowance being 50% of Foreign Travelling Expenses - the lower authorities has admitted the genuineness of the expenses to the tune of 50% and the balance was...

Clarification on GST rate applicable on supply of food and beverage services by educational institution.

Clarification on GST rate applicable on supply of food and beverage services by educational institution

Disallowance of Development/improvement expenses - payment to related parties - Considering the fact that neither the assessee could substantiate with documentary...

Valuation - inclusion of advertisement and publicity expenses incurred by the dealers as per the terms and conditions of the dealership agreement mutually agreed between...

Disallowance of depreciation on guest house - assessee has claimed depreciation @ 10% on guest house, which is applicable to factory and office buildings - assessee had...

Cenvat Credit - eligible input services - guest house services - charges paid by them for accommodation of their employees at the Guest House at Gurgaon managed by their...

Various issues related to allowability of expenses, deductions, transfer pricing adjustments, and other income tax matters for a pharmaceutical company. Key points are:...

Classification of supply - supply of goods or supply of services - supply of food and beverages by the eating joints - the supply of food by the entity partially or...

Deduction claimed u/s 54 - oint owners of the house property having 50% right, title and interest over the property - Since the assessee and her son have jointly...

Levy of service tax - Infrastructural services under the category of Business Support Services - Transit / Guest House services provided to group companies - The...

Undisclosed overseas deposits - We keep in mind all these peculiar facts and circumstances more particularly the fact that such religion congregations indeed involve day...

Genuineness of expenses - purchase of diesel and oil - the in-house consumption of diesel and oil cannot be neglected. But the fact that the assessee has not maintained...

Quick Updates: