Telephone expenses, the club subscriptions and expenses were incurred for business purposes as much as they facilitated interaction with business associations and were incurred with a view to promote soliciting the customers. Allowable as deduction. Expenses incurred by the assessee on purchase of cigarettes and wines not allowable as deduction. (AY. 2014-15)
Maharani of India v. ACIT (2022) 94 ITR 8(SN) (Delhi)(Trib.)
S. 37(1) : Business expenditure-Telephone expenses-Club membership fee-Allowable as business expenditure-Entertainment Expenses-Expenses incurred on cigarettes and wines not allowable.