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2011 (2) TMI 529 - AT - Income TaxClub membership fees - Membership was taken in the name of Shri Vishnukumar Agarwal who is none other than the Director of the assessee-company and none of the Executives of the company appears to have been made members of the club - Assessing Officer as well as the CIT(A) have recorded a finding that no evidence was produced by the assessee as to how this membership was actually utilised for the benefit of the assessee-company - Learned CIT(A) observed that Garware Club does not grant membership to companies which implies that the club is not meant for corporate world in which event the claim of the assessee that Garware Club provides incentives to a company for conducting business meetings cannot be accepted. the expenditure incurred by the assessee is not allowable under section 37 (1) of the Act since it was not wholly and exclusively incurred for the purpose of business - Since the impugned expenditure did not pass the first test, it is not necessary for us to go into the next issue as to whether it was a capital expenditure or a revenue expenditure - Hence, decided against of assessee.
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