The Tribunal held that the managing director of the assessee-company was the Honorary Consul of Ireland in his individual and personal capacity and an event was hosted by him at Hotel Taj Bengal to celebrate Ireland National Day in India in that capacity. There was no evidence to substantiate the contention that the guests related to the business of the assessee-company were invited to participate in the event nor to establish that the event in any way helped in the advancement of the business of the assessee-company. The claim of the assessee that the expenditure incurred on organising an event to celebrate the Ireland National Day in India was wholly and exclusively incurred for the purpose of business of the assessee-company was not correct and the expense was rightly disallowed by the authorities. That the expenses incurred on organizing the event to celebrate Ireland National Day in India having been entirely disallowed by the authorities below the disallowance of 20 per cent. was to be out of the balance amount of sales promotion expenses..(AY. 2014-15)
MKJ Enterprises Ltd. v. Dy.CIT (2020) 83 ITR 224/ (2021 ) 187 ITD 678/ 212 TTJ 507 / 204 DTR 51 (Kol.)(Trib.)
S. 37(1) : Business expenditure-Expenditure incurred on celebration of Ireland-Not allowable as business expenditure-Unverifiable and personal element involved-Disallowance of 20 Per Cent. is up held.