Tax Court: Meals for Assessee's Constituents Deemed Entertainment Expenses

The High Court of Punjab and Haryana held that expenses for serving meals to the assessee's constituents are deemed entertainment expenses under section 37(2A) of the Income-tax Act, 1961. The ruling, following a Full Bench precedent, favored the Revenue without awarding costs.

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The High Court of Punjab and Haryana ruled that expenses incurred on running a kitchen for serving meals to the assessee's constituents are considered entertainment expenses under section 37(2A) of the Income-tax Act, 1961. The decision was based on a previous Full Bench ruling. The judgment favored the Revenue and no costs were awarded.

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