https://www.taxtmi.com/caselaws?id=24602 Customary hospitality spending on soft drinks, snacks and simple meals for customers and suppliers was treated as ordinary business expenditure, not entertainment expense, so it remained deductible and was not hit by section 37(2B). Surtax liability, however, was regarded as a tax on profits and gains and therefore fell within the prohibition in section 40(a)(ii), making it nondeductible as business expenditure. The reference was disposed of by allowing the hospitality deduction while upholding disallowance of the surtax claim. en-us Fri, 14 Aug 1987 00:00:00 +0530 Thu, 21 Jan 2010 11:16:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24602 Customary hospitality spending on soft drinks, snacks and simple meals for customers and suppliers was treated as ordinary business expenditure, not entertainment expense, so it remained deductible and was not hit by section 37(2B). Surtax liability, however, was regarded as a tax on profits and gains and therefore fell within the prohibition in section 40(a)(ii), making it nondeductible as business expenditure. The reference was disposed of by allowing the hospitality deduction while upholding disallowance of the surtax claim. Case-Laws Income Tax Fri, 14 Aug 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24602