Assessing Officer disallowed deduction claimed on mere disclosure of these expenditure in clause 21(a) of tax audit report. Held that assessee claimed that these expenditures were incurred wholly and exclusively for purpose of its business, same was to be verified before deciding allowability of same under section 37(1) of the Act. Matter remanded for verification. (AY. 2018-19)
Legacy Global Projects (P.) Ltd. v. ADIT (2022) 197 ITD 655 / 100 ITR 9 (SN) (Bang.)(Trib.)
S. 37(1) : Business expenditure-Club expenses-Deduction could not be disallowed on mere disclosure of these expenditure in clause 21(a) of tax audit report-Matter remanded.