Entertainment expenditure definition now includes allowances to employees and expenses incurred by employees for business purposes. The amendment adds an Explanation to section 37 defining entertainment expenditure to include: (i) entertainment allowances paid by the assessee to employees or other persons after the operative date; and (ii) entertainment expenses incurred by employees or other persons for the assessee's business or profession (excluding those met from such allowances) after the operative date, thereby bringing both employer-paid allowances and employee-incurred business entertainment costs within the statutory concept of entertainment expenditure.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Entertainment expenditure definition now includes allowances to employees and expenses incurred by employees for business purposes.
The amendment adds an Explanation to section 37 defining entertainment expenditure to include: (i) entertainment allowances paid by the assessee to employees or other persons after the operative date; and (ii) entertainment expenses incurred by employees or other persons for the assessee's business or profession (excluding those met from such allowances) after the operative date, thereby bringing both employer-paid allowances and employee-incurred business entertainment costs within the statutory concept of entertainment expenditure.
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