https://www.taxtmi.com/caselaws?id=8116 Section 7(2)(ii) of the Income-tax Act, 1922 allowed a limited deduction for entertainment allowance only where the allowance was regularly received from the same employer before 1 April 1955, and only up to one-fifth of remuneration or Rs. 7,500, whichever was less. The legislative scheme, introduced by the Finance Act, 1955, withdrew the earlier exemption and confined the new deduction to pre-existing allowances, showing that allowances first granted after that date were outside the provision. The entitlement condition was treated as an essential limitation on deduction, so later-granted entertainment allowances did not qualify. en-us Mon, 07 Dec 1970 00:00:00 +0530 Sat, 28 Mar 2009 17:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8116 Section 7(2)(ii) of the Income-tax Act, 1922 allowed a limited deduction for entertainment allowance only where the allowance was regularly received from the same employer before 1 April 1955, and only up to one-fifth of remuneration or Rs. 7,500, whichever was less. The legislative scheme, introduced by the Finance Act, 1955, withdrew the earlier exemption and confined the new deduction to pre-existing allowances, showing that allowances first granted after that date were outside the provision. The entitlement condition was treated as an essential limitation on deduction, so later-granted entertainment allowances did not qualify. Case-Laws Income Tax Mon, 07 Dec 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8116