https://www.taxtmi.com/caselaws?id=22898 The High Court ruled in favor of the assessee, allowing the expenditure on hot drinks served to stewards and officials on race days as a legitimate business expense, not entertainment. The court emphasized that such expenses, if reasonable and aimed at promoting business activities, should be considered revenue expenditure, aligning with the necessity and commercial practices of the trade. The judgment highlighted the requirement for expenditure to be wholly and exclusively for business purposes to be allowable, rejecting the Income-tax Officer's disallowance and reducing the disallowed amount to Rs. 40,000. en-us Tue, 16 May 1989 00:00:00 +0530 Tue, 15 Dec 2009 12:15:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22898 The High Court ruled in favor of the assessee, allowing the expenditure on hot drinks served to stewards and officials on race days as a legitimate business expense, not entertainment. The court emphasized that such expenses, if reasonable and aimed at promoting business activities, should be considered revenue expenditure, aligning with the necessity and commercial practices of the trade. The judgment highlighted the requirement for expenditure to be wholly and exclusively for business purposes to be allowable, rejecting the Income-tax Officer's disallowance and reducing the disallowed amount to Rs. 40,000. Case-Laws Income Tax Tue, 16 May 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22898