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2017 (8) TMI 1596 - AT - Income TaxDisallowance of 10% of the hospitality expenses on adhoc basis in the hands of the assessee being a Corporate entity/ artificial person - HELD THAT:- Following decisions lay down the ratio that a company being an artificial person, there cannot be any personal element in expenses incurred by a company and subsequently, no disallowance in the hands of a company can be made u/s 37 of the Act. The addition, if any, can be made in the hands of a person (e.g. employee, directors etc.) receiving such benefits. As relying on Sayaji Iron &Engg. Co [2001 (7) TMI 70 - GUJARAT HIGH COURT] , Ramkishin Textiles (P.) Ltd vs ITO [2011 (1) TMI 903 - ITAT MUMBAI], KSS LTD. (FORMERLY KNOWN AS K SERA SERA PRODUCTIONS LTD.) VERSUS DCIT RG 2 (3) (1) , MUMBAI [2015 (12) TMI 1784 - ITAT MUMBAI] we do not find any merit for the disallowance of 10% of the hospitality expenses on adhoc basis in the hands of the assessee being a Corporate entity/ artificial person. - Decided in favour of assessee.
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