https://www.taxtmi.com/caselaws?id=27401 The court ruled against the assessee in a case concerning the deductibility of expenses for providing tea, coffee, and soft drinks to customers under section 37(2A) of the Income Tax Act. Despite the assessee's argument that the expenses were for business promotion and relationship maintenance, the court held that such hospitality expenses constituted entertainment expenditure as per the Act. The judgment emphasized that post the insertion of Explanation (2) in section 37(2A), expenses on customers, excluding employees, are not deductible under section 37(1), affirming the disallowance of the claimed expenses in favor of the Revenue. en-us Mon, 06 May 1985 00:00:00 +0530 Fri, 12 Feb 2010 15:26:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27401 The court ruled against the assessee in a case concerning the deductibility of expenses for providing tea, coffee, and soft drinks to customers under section 37(2A) of the Income Tax Act. Despite the assessee's argument that the expenses were for business promotion and relationship maintenance, the court held that such hospitality expenses constituted entertainment expenditure as per the Act. The judgment emphasized that post the insertion of Explanation (2) in section 37(2A), expenses on customers, excluding employees, are not deductible under section 37(1), affirming the disallowance of the claimed expenses in favor of the Revenue. Case-Laws Income Tax Mon, 06 May 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27401