Assessee claimed deduction of membership fees paid to club by its Chairman and Managing Director for increasing business and business development. AO disallowed such expenditure by holding that club membership fees of director was personal in nature. Tribunal held that since membership allowed employees to interact with its customers the  expenditure was incurred wholly and exclusively for purpose of business and eligible for deduction. High Court affirmed the order of the Tribunal. (AY. 2004 -05)