CIT v. Nestle India Ltd.

14 Taxmann 99High Court1983#834 most cited

What is CIT v. Nestle India Ltd. authority for?

Club entrance fees, if incurred wholly and exclusively for business purposes, are allowable as revenue expenditure under Section 37(1). Furthermore, an order holding a deductor liable for TDS defaults under Section 201 must be preceded by an inquiry into the deductee's actual tax payment.

125

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2009 to 2025.

Also referred to as

CIT v. Nestle India Ltd. · Section 37(1) · Section 201 · 296 ITR 682 · club entrance fees · business expenditure · revenue expenditure · TDS default · assessee-in-default · deductee tax payment · Delhi High Court

Also reported as

296 ITR 68211 Taxmann.com 106263 CTR 241

Sections most often in play

Section 10(38)Section 115JBSection 14ASection 37(1)Section 43(1)

Issues it is cited on

indiacompanytotal incomebusinessinterest

Judgments citing CIT v. Nestle India Ltd.

State Bank of India (Earlier Known As Sbbj), Ajmer vs. Income Tax Officer(TDS), Ajmer

In the result, appeal of the assessee is allowed for statistical purposes

ITA 173/JPR/2025[2017-18]Status: DisposedITAT Jaipur27 May 2025AY 2017-18
For Appellant: Mrs. Apeksha Kalra, AdvocateFor Respondent: Shri Gautam Singh Choudhary, Addl. CIT-DR
Section 142Section 201Section 201(1)Section 250(6)Section 253(5)Section 292BSection 5

…he deductor cannot be held liable for TDS defaults. The Apex Court emphasized that tax authorities must verify the deductee's tax payments before declaring the deductor as an assessee-in-default. The Hon'ble Delhi High Court in CIT v. Nestle India Ltd. (2008) 296 ITR 682 (Del HC) further reinforced this principle, ruling that an order under Section 201 must be preceded by an inquiry into the tax liability of the deductee. If the deductee has already paid taxes, then treating the deductor as an assessee- in-default is unjustified. Moreover, the impugned order suffers from a gross violation of the principles of nat…

DCIT Cir 3(1), Mumbai vs. Bajaj Hindustan Ltd, Mumbai

In the result, appeal of the assessee is allowed and appeal of the revenue is partly allowed for statistical purposes

ITA 4446/MUM/2013[2009-10]Status: DisposedITAT Mumbai28 Aug 2024AY 2009-10

Bench: Shri Amarjit Singh & Shri Raj Kumar Chauhanassessment Year: 2009-10 Dcit, Circle-3(1), Mumbai M/S. Bajaj Hindustan Ltd.

For Appellant: Shri Kirit KamdarFor Respondent: Shri S. Srinivasu, CIT, DR
Section 10(38)Section 115JSection 14Section 143(2)Section 143(3)Section 14A

…g the same as not revenue in nature. However, the ld. CIT(A) has allowed the claim of club entrance fees by treating the same as business expenditure u/s 37(1) of the Act after relying upon the following judicial pronouncements: “i. CIT vs Nestle India Ltd. (296 ITR 682 (Del) ii. Gujarat State Export Corporation Ltd. vs CIT (209 ITR 649)(Guj) iii. DCIT vs America Securities India (P) Ltd. (136 TTJ 441) 23. Heard both the sides and perused the material on record on this issue. Before us, the ld. Counsel has also referred the decision of the Hon’ble Bombay High Court in the case of Swiss Re Services India (P) Ltd…

Bajaj Hindustan Ltd, Mumbai vs. Addl CIT RG 3(1), Mumbai

In the result, appeal of the assessee is allowed and appeal of the revenue is partly allowed for statistical purposes

ITA 3714/MUM/2013[2009-10]Status: DisposedITAT Mumbai28 Aug 2024AY 2009-10

Bench: Shri Amarjit Singh & Shri Raj Kumar Chauhanassessment Year: 2009-10 Dcit, Circle-3(1), Mumbai M/S. Bajaj Hindustan Ltd.

For Appellant: Shri Kirit KamdarFor Respondent: Shri S. Srinivasu, CIT, DR
Section 10(38)Section 115JSection 14Section 143(2)Section 143(3)Section 14A

…g the same as not revenue in nature. However, the ld. CIT(A) has allowed the claim of club entrance fees by treating the same as business expenditure u/s 37(1) of the Act after relying upon the following judicial pronouncements: “i. CIT vs Nestle India Ltd. (296 ITR 682 (Del) ii. Gujarat State Export Corporation Ltd. vs CIT (209 ITR 649)(Guj) iii. DCIT vs America Securities India (P) Ltd. (136 TTJ 441) 23. Heard both the sides and perused the material on record on this issue. Before us, the ld. Counsel has also referred the decision of the Hon’ble Bombay High Court in the case of Swiss Re Services India (P) Ltd…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 4081/DEL/2010[2003-04]Status: PendingITAT Delhi12 Mar 2024AY 2003-04

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Rajesh Kumar, CIT-DR

…the SLP filed by Revenue against the order of Dr Delhi High Court (referred infra) allowing the claim for deduction representing 6 expenditure incurred on club membership. The Ld. AR relied upon the following judicial pronouncements: • Nestle India Limited: 296 ITR 682 (Del.) • CIT v. Samtel Color Ltd.: 326 ITR 425 (Del.) - SLP filed by the Revenue dismissed in C.A No.6449/2012 • Otis Elevators Co. (India) Ltd v. CIT 195 ITR 682 (Bom) • CIT v. Citibank N.A.: 264 ITR 18 (Bom) • CIT v. Force Motors Ltd.: ITA No. 5296 of 2010 (Bom) • CIT v. Sundaram Industries Ltd 240 ITR 335 (Mad) • Gujarat State Export Corporat…

Ginni Gold Private Limited, New Delhi vs. ACIT, Central Circle-28, New Delhi

In the result, appeal of the assessee is allowed

ITA 564/DEL/2022[2016-17]Status: DisposedITAT Delhi31 Oct 2023AY 2016-17

Bench: Shri Challa Nagendra Prasada N D Shri M. Balaganesh

For Appellant: Shri Anup Mehta
Section 143(3)Section 271(1)(c)Section 40

…I.T.A. No. 564/Del/2022 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “B” : DELHI ] BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER A N D SHRI M. BALAGANESH, ACCOUNTANT MEMBER आ.अ.सं./ I.T.A No.564/Del/2022 िनधा"रणवष"/Assessment Year: 2016-17 M/s. Ginni Gold Pvt. Ltd., ACIT, बनाम Shop No. 403, Fourth Floor, Central Circle : 28, Vs. 2633-2634, Bank Street, New Delhi. Karol Bagh, New Delhi – 110 005. PAN No. AACCG9728Q अपीलाथ" /Appellant ""यथ"/Respondent िनधा"रतीक"ओरसे /Assessee by : Shri Anup Mehta, C. A.; Shri Vivek Kumar Upadhyay, राज"वक"ओरसे / Department by Sr. D. R.; : 21/08/2023 सुनवाईक"तारीख/ D…

Shri Sanjay Mittal Prop, Jalandhar vs. Income Tax Officer Ward 2(4), Jalandhar

In the result, the appeal of the assessee bearing ITA No

ITA 32/ASR/2021[2017-18]Status: DisposedITAT Amritsar13 Sept 2023AY 2017-18

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 145(3)Section 250Section 69A

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 32/Asr/2021 Assessment Year: 2017-18 Sanjay Mittal Vs. Income Tax Officer, Prop. M/s G.D. Steel Inds Sodal Ward- 2(4), Jalandhar Road, Jalandhar. Punjab. [PAN:-ACJPM5703F] (Appellant) (Respondent) Appellant by Sh. Vijay Bajaj, Adv. Respondent by Smt. Ratinder Kaur, Sr.DR. Date of Hearing 29.08.2023 13.09.2023 Date of Pronouncement ORDER Per: Anikesh Banerjee, JM: The instant appeal of the assessee was filed against the order of the ld. NFAC, Delhi, (…

Teejay India Private Limited, Visakhapatnam vs. Assistant Commissioner of Income Tax, Dc/Ac 4(1), Visakhapatnam

In the result, appeal filed by the assessee is partly allowed

ITA 152/VIZ/2021[2016-17]Status: DisposedITAT Visakhapatnam23 Jan 2023AY 2016-17

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri Darpan Kirpalani CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 10ASection 142(1)Section 143(2)Section 143(3)Section 36(1)(va)Section 92C

…d. DRP. He therefore pleaded that the order of the Ld. DRP may be upheld. 16. We have heard both the sides and perused the material available on record and the orders of the Ld. Revenue Authorities. We find that the Ld. TPO has relied on Nestle India Ltd (337 ITR 103) (Delhi) and Sara Lee TTK Ltd (2016) 76 taxmann.com 74 (Mumbai-Trib) with respect to payment of royalty. The Ld. TPO ignored the RBI Master Circular dated 30/3/2012 on ECB and trading credits which provides interest for all in cost ceiling of 6 month LIBOR plus 350k basis points with a maturity period of 3 years and upto 5 years. We find from…

Mehra and Sistani, New Delhi vs. DCIT CPC, Bengaluru

In the result, this appeal of the assessee is allowed

ITA 199/DEL/2021[2018-19]Status: DisposedITAT Delhi22 Nov 2022AY 2018-19

Bench: The Ao & Also Before The Ld. Cit(A), Contending That The Expenses Were Incurred Exclusively

Section 143(1)

…g the following judicial precedents in which the issue was decided in favour of the assessee: (i) CIT vs. United Glass Mfg. Co. Ltd. reported in 28 taxmann.com 429 (SC) (ii) CIT vs. Samtel Color Ltd. 180 taxmann.com 82 (Del) (iii) CIT vs. Nestle India Ltd. 296 ITR 682 (Del) (iv) CIT vs. Sundaram Industries Ltd., 240 ITR 335 (Mad) (v) DCIT vs. Deloittee Touche Tohmatsu in ITA No.3017/Mum/2016 (Mum-Trib.) order dated 27/04/2018 (A.1.1) In view of the aforesaid judicial precedents in the cases of CIT vs. United Glass Mfg. Co. Ltd. reported in 28 taxmann.com 429 (SC); CIT vs. Samtel Color Ltd. 180 taxmann.com 82…

DCIT Circle-9(1), New Delhi vs. Federal Mogul Goetze (India) Ltd., New Delhi

In the result, both the appeals filed by Revenue are

ITA 8286/DEL/2019[2013-14]Status: DisposedITAT Delhi16 Sept 2022AY 2013-14

Bench: Or During The Hearing Of This Appeal.”

Section 143(3)Section 148Section 40

…CIT(A) Page 4 of 15 ITA No.8285 & 8286/Del/2019 DCIT vs. Federal Mogul Goetze (India) Ltd. following the judgments of Hon'ble Jurisdictional High Court in the case of CIT vs. Samtel Color Ltd. (2010) 326 ITR 425 (Del) and CIT vs. Nestle India Ltd. (2008) 296 ITR 682 (Del.), held that the club membership fees, life membership fees or annual fees, for the benefit of the employees is allowable the expenditure and accordingly, deleted the said disallowance. 10. The Ld. DR. submitted that the Assessing Officer has made disallowance on the ground that the assessee could not show the purpose of business for incurri…

DCIT Circle-9(1), New Delhi vs. Federal Mogul Goetze (India) Ltd., New Delhi

In the result, both the appeals filed by Revenue are

ITA 8285/DEL/2019[2012-13]Status: DisposedITAT Delhi16 Sept 2022AY 2012-13

Bench: Or During The Hearing Of This Appeal.”

Section 143(3)Section 148Section 40

…CIT(A) Page 4 of 15 ITA No.8285 & 8286/Del/2019 DCIT vs. Federal Mogul Goetze (India) Ltd. following the judgments of Hon'ble Jurisdictional High Court in the case of CIT vs. Samtel Color Ltd. (2010) 326 ITR 425 (Del) and CIT vs. Nestle India Ltd. (2008) 296 ITR 682 (Del.), held that the club membership fees, life membership fees or annual fees, for the benefit of the employees is allowable the expenditure and accordingly, deleted the said disallowance. 10. The Ld. DR. submitted that the Assessing Officer has made disallowance on the ground that the assessee could not show the purpose of business for incurri…

M/S. Odisha Power Generation Corporation Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 131/CTK/2019[2014-15]Status: DisposedITAT Cuttack12 Sept 2022AY 2014-15

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

M/S. Odisha Power Generation Corporation Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 130/CTK/2019[2013-14]Status: DisposedITAT Cuttack12 Sept 2022AY 2013-14

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 64/CTK/2017[2009-10]Status: DisposedITAT Cuttack12 Sept 2022AY 2009-10

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Orissa Power Generation Corporation Ltd., Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 288/CTK/2016[2011-12]Status: DisposedITAT Cuttack12 Sept 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 267/CTK/2016[2011-12]Status: DisposedITAT Cuttack12 Sept 2022AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

ACIT, Corporate Circle-1(2), Bhubaneswar vs. M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 175/CTK/2016[2012-13]Status: DisposedITAT Cuttack12 Sept 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. ACIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 173/CTK/2016[2012-13]Status: DisposedITAT Cuttack12 Sept 2022AY 2012-13

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

M/S. Odisha Power Generation Corporation Ltd., Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 84/CTK/2014[2010-11]Status: DisposedITAT Cuttack12 Sept 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

DCIT, Bhubaneswar vs. Orissa Power Generation Corporation Ltd, Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 114/CTK/2014[2010-11]Status: DisposedITAT Cuttack12 Sept 2022AY 2010-11

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaita No Ita No.114/Ctk/2014: Assessment Year Assessment Year : 2010-11

For Appellant: S/Shri Dilip Kr. Mohanty/Pradyumna Kumar Sahu

…MANU/TN/2608/2009, wherein, it has been held that the expenditure incurred on Puja, Hawan and Kirtan was a welfare measure of the employees and the same was allowable. He also relied on the decision of Hon’ble Supreme Court in the case of CIT vs Nestles ltd., 296 ITR 682 (SC) for this proposition. It was the submission P a g e 29 | 52 OPGC that the disallowance of Rs.11,42,475/- as made by the AO and confirmed by the ld CIT(A) may be deleted. 32. We have considered the rival submissions. A satisfied employee is an asset to an organisation. One can feed a person, he would be happy for a day. Give a person work…

Vic Enterprises Pvt. Ltd., New Delhi vs. ACIT Circle 26(2), New Delhi

In the result, all the issues raised in the captioned appeals are decided

ITA 3418/DEL/2019[2011-12]Status: DisposedITAT Delhi31 Aug 2022AY 2011-12

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri M.P. Rastogi CAFor Respondent: Shri Ramdhan Meena, Sr.D.R
Section 143(3)Section 14ASection 271(1)(c)Section 94(7)

…6, 3417 & 3418/Del/2019 4 mean that the assessee has concealed any income or furnished inaccurate particulars per se. It was contended that the club expenses incurred were allowed as revenue expenditure in many cases i.e., 195 ITR 682 (Bombay) Otis Elevator; 296 ITR 682 (Delhi) Nestle India Ltd.; 180 Taxman 82 (Delhi) Samtel Colour Ltd.; 239 ITR 237 (Delhi) Engineers India Ltd.; 209 ITR 649 (Gujarat) Gujarat State Export Ltd. 7. We find considerable merit in the plea of assessee. In the light of plethora of judicial precedents, the question of allowability of club expenses, in itself, is a debatable issue and v…