Calculation of percentage limits of entertainment expenditure under section 37(2A) - Modification to para 24.2 of Circular No. 202, dated 5-7-1976

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....is invited to para 24.2 of the Explanatory Notes on the provisions relating to direct taxes in the Finance Act, 1976. The second sentence in the said paragraph reads as under : "The percentage limits will, however, be calculated with reference to the quantum of profits and gains of the business or profession as reduced by not only development rebate, development allowance and entertainment expend....