Tribunal held that one-time entry fee paid by individual assessee for club membership could not be allowed as a business expenditure and was correctly disallowed by CPC under section 143(1)(a). Tribunal also held that even if assessee used its club facility for soliciting customers, recurring expenditure could be allowed as business expenditure subject to verification but not one-time entry fee. (AY. 2019-20)
Balrajsingh Jagjitsingh Kharbanda v. ADIT, CPC, (2023) 202 ITD 433 (Mum.)(Trib.)
S. 37(1) : Business expenditure-Club membership fee-One-time entry fee paid by individual assessee for club membership could not be allowed as business expenditure-Adjustment is affirmed-Only corporate membership one time membership fee is allowable. [S.143(1)(a)]