Rasoi expenses not deductible as entertainment expenses under Income-tax Act

The High Court of Allahabad held that rasoi expenses were not deductible as entertainment expenses under section 37(2B) of the Income-tax Act, 1961, following precedent from Phool Chand Gajanand v. CIT [1989] 177 ITR 265. No costs were awarded to either party.

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The High Court of Allahabad ruled against the assessee, stating that rasoi expenses were not entertainment expenses and therefore not deductible under section 37(2B) of the Income-tax Act, 1961. The decision was based on a previous Full Bench ruling in Phool Chand Gajanand v. CIT [1989] 177 ITR 265. No costs were awarded.

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