https://www.taxtmi.com/caselaws?id=755968 The Bombay HC ruled on business expenditure deductions. Following SC precedent in Britannia Industries Ltd., the court held that municipal taxes, maintenance and repair expenses for guest houses cannot be deducted under Sections 30 and 32, as legislature specifically excluded such accommodation expenses. Regarding food, beverages and employee salary expenses at guest houses, the court applied Section 37(2A) with Explanation 2, ruling these constitute entertainment expenditure and are not deductible. However, the court allowed 50% deduction for dealer conference expenses, finding seminar-related travel, boarding and lodging costs were legitimate business expenditure. Additionally, expenses for presentation articles were held deductible as advertisement expenses, following West Coast Paper Mills Ltd. precedent. en-us Fri, 05 Jul 2024 00:00:00 +0530 Tue, 23 Jul 2024 10:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755968 The Bombay HC ruled on business expenditure deductions. Following SC precedent in Britannia Industries Ltd., the court held that municipal taxes, maintenance and repair expenses for guest houses cannot be deducted under Sections 30 and 32, as legislature specifically excluded such accommodation expenses. Regarding food, beverages and employee salary expenses at guest houses, the court applied Section 37(2A) with Explanation 2, ruling these constitute entertainment expenditure and are not deductible. However, the court allowed 50% deduction for dealer conference expenses, finding seminar-related travel, boarding and lodging costs were legitimate business expenditure. Additionally, expenses for presentation articles were held deductible as advertisement expenses, following West Coast Paper Mills Ltd. precedent. Case-Laws Income Tax Fri, 05 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755968