https://www.taxtmi.com/caselaws?id=22653 HC dismissed Revenue's appeal, affirming the ITAT's decision that 35% of the entertainment, seminar and conference expenditure was not hit by s. 37(2A) of the Income-tax Act. It held that the characterization of expenditure on employees' food and beverages, incurred while discharging official duties alongside customers, is a pure question of fact. The Tribunal's estimation that 35% related to employees' consumption was neither arbitrary nor unreasonable, and such expenditure, being on employees at work, falls outside the restrictive ambit of s. 37(2A). No substantial question of law arose, and the assessee's claim was sustained. en-us Mon, 15 Apr 1991 00:00:00 +0530 Wed, 10 Dec 2025 17:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22653 HC dismissed Revenue's appeal, affirming the ITAT's decision that 35% of the entertainment, seminar and conference expenditure was not hit by s. 37(2A) of the Income-tax Act. It held that the characterization of expenditure on employees' food and beverages, incurred while discharging official duties alongside customers, is a pure question of fact. The Tribunal's estimation that 35% related to employees' consumption was neither arbitrary nor unreasonable, and such expenditure, being on employees at work, falls outside the restrictive ambit of s. 37(2A). No substantial question of law arose, and the assessee's claim was sustained. Case-Laws Income Tax Mon, 15 Apr 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22653