https://www.taxtmi.com/highlights?id=64261 Entertainment tax subsidy - capital or revenue receipt - disallowance u/s. 37 - AO made ad hoc disallowance u/s. 37 @ 10% of expenditure. However, the said disallowance was not added by AO in the assessment order because the AO has added entire entertainment subsidy as capital receipt. This is an ad hoc disallowance. AO has not pointed out any specific expenditure which was in the nature of revenue expenditure. AO cannot presume it. Therefore, the AO is directed to delete the said disallowance - AT en-us Sat, 25 Jun 2022 10:51:14 +0530 Sat, 25 Jun 2022 10:51:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=64261 Entertainment tax subsidy - capital or revenue receipt - disallowance u/s. 37 - AO made ad hoc disallowance u/s. 37 @ 10% of expenditure. However, the said disallowance was not added by AO in the assessment order because the AO has added entire entertainment subsidy as capital receipt. This is an ad hoc disallowance. AO has not pointed out any specific expenditure which was in the nature of revenue expenditure. AO cannot presume it. Therefore, the AO is directed to delete the said disallowance - AT Highlights Income Tax Sat, 25 Jun 2022 10:51:14 +0530 https://www.taxtmi.com/highlights?id=64261