M/S TIRUPATI CARBONS & CHEMICALS PVT LTD,RANCHI vs. DCIT CIRCLE-3, RANCHI

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ITA 55/RAN/2018Status: DisposedITAT Ranchi10 September 20204 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while club expenses can be for business purposes, a portion might be for personal use. To meet the ends of justice, it disallowed Rs. 20,000/- towards personal expenses and directed the deletion of the balance.

What were the facts?

The assessee company incurred Rs. 1,93,525/- on club expenses for its directors. The Assessing Officer disallowed the entire amount, stating it was not for commercial expediency. The CIT(A) confirmed this disallowance.

What were the issues?

Whether club expenses incurred by directors are wholly and exclusively for the purpose of business and therefore deductible.

Which sections of the Income-tax Act were involved?

Section 37

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, RANCHI ‘E-COURT’AT KOLKATA

Before: Shri S.S, Godara, JM & Dr. A.L. Saini, AM

For Appellant: Shri Devesh Poddar, AR
For Respondent: Shri A. K. Mohanti, JCIT, Sr. DR
Hearing: 16/07/2020Pronounced: 10/09/2020

आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. अपीलाथ�/Appellant-M/s Tirupati Carbons & Chemicals Pvt. Ltd. 2. ��यथ�/Respondent- DCIT, Circle-3, Ranchi 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण / DR, ITAT, 6. गाड� फाइल / Guard file.

//True Copy// By order/आदेश से,

Sr. Private Secretary

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