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2020 (11) TMI 318 - HC - Income TaxAllowability of the expenditure applying the test of the commercial expediency - expenditure incurred towards community welfare? - HELD THAT:- This issue was dealt by us in the Revenue's appeal for AY 2007-08 [2019 (3) TMI 1826 - ITAT CHENNAI] wherein we remitted this issue to the file of AO for fresh adjudication on the touch stone of commercial expediency. Similarly, this issue for the year under consideration also, we remit this issue to the file of AO for fresh adjudication on the similar directions. Expenses incurred by contributing to Chennai Open Tennis Tournament - According to the assessee they are entitled to claim it as reduction because it amount to commercial expediency as the assessee would get visibility by contributing towards the programme - HELD THAT:- Letter issued by the Government of Tamil Nadu has been held to be only intimation/invitation and that cannot be the sole reason for the appellant to claim the same as an expenditure under Section 37 - As relying on MALAYALAM PLANTATIONS LIMITED [1964 (4) TMI 9 - SUPREME COURT] Revenue may realise the amounts from the business assets is a consequence of the default of the assessee in not discharging his statutory obligation, but it does not make the expenditure any the more expenditure incurred in the conduct of the business. It is manifest that the amounts in question were paid by the assessee as a statutory agent to discharge a statutory duty unconnected with the business, though the occasion for the imposition arose because of the territorial nexus afforded by the accident of its doing business in India. - Decided against assessee.
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