The AO disallowed expenses claimed by the assessee under the head sales promotion and Diwali expenses on the ground that they were personal in nature. Tribunal held that assessee had given details as to how these expenses were related to the business. The AO not justify the reasoning that the sales promotion expenses and Diwali expenses were personal in nature. (AY 2011-12).
Dy. CIT v. Dee Development Engineers ltd. (2021) 87 ITR 38 (SN) (Delhi)(Trib.)
S. 37(1) : Business Expenditure-Sales promotion and diwali expenses are held to be allowable as business expenditure.