https://www.taxtmi.com/caselaws?id=36026 Section 37(2A) of the Income-tax Act, 1961 was interpreted broadly to treat the phrase "in the nature of entertainment expenditure" as covering business hospitality of any kind. Reading the provision with its legislative history and related sections, the Court held that the ceiling on entertainment expenditure was meant to curb unrestricted hospitality extended for business purposes. Kitchen expenses incurred for providing wholesome food and drink to customers were therefore treated as entertainment expenditure, even if the hospitality was modest or frugal, provided it genuinely amounted to hospitality in ordinary parlance. en-us Thu, 04 Jun 1981 00:00:00 +0530 Fri, 19 Mar 2010 10:05:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36026 Section 37(2A) of the Income-tax Act, 1961 was interpreted broadly to treat the phrase "in the nature of entertainment expenditure" as covering business hospitality of any kind. Reading the provision with its legislative history and related sections, the Court held that the ceiling on entertainment expenditure was meant to curb unrestricted hospitality extended for business purposes. Kitchen expenses incurred for providing wholesome food and drink to customers were therefore treated as entertainment expenditure, even if the hospitality was modest or frugal, provided it genuinely amounted to hospitality in ordinary parlance. Case-Laws Income Tax Thu, 04 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36026