https://www.taxtmi.com/caselaws?id=753989 ITAT Delhi allowed the assessee company's appeal regarding disallowance of club expenses. The tribunal held that AO's finding that club expenses were personal in nature was erroneous. Since the assessee is a company, it cannot have personal expenses as it is a juristic person operating through individuals. The tribunal emphasized that a company being an inanimate entity cannot have personal expenses, unlike living beings. CIT(A)'s findings were unsustainable as they lacked specific findings about the expenses. The tribunal referenced Gujarat HC's decision in Sayaji Iron Engg.Co. vs CIT, noting that companies are distinct assessable entities under section 2(31). Bald assertions without proper verification are insufficient to conclude expenses are personal when the assessee is a company. en-us Fri, 31 May 2024 00:00:00 +0530 Fri, 14 Jun 2024 08:17:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753989 ITAT Delhi allowed the assessee company's appeal regarding disallowance of club expenses. The tribunal held that AO's finding that club expenses were personal in nature was erroneous. Since the assessee is a company, it cannot have personal expenses as it is a juristic person operating through individuals. The tribunal emphasized that a company being an inanimate entity cannot have personal expenses, unlike living beings. CIT(A)'s findings were unsustainable as they lacked specific findings about the expenses. The tribunal referenced Gujarat HC's decision in Sayaji Iron Engg.Co. vs CIT, noting that companies are distinct assessable entities under section 2(31). Bald assertions without proper verification are insufficient to conclude expenses are personal when the assessee is a company. Case-Laws Income Tax Fri, 31 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753989