Assessee-co-operative bank claimed expenses for giving gift to staff, director, customers and other. Assessing Officer disallowed said expenses on ground that there was no bifurcation. On appeal the Tribunal held that gifts given to customers of bank on occasion of new year and festivals were allowable, however gifts given to directors of assessee and to government employees would not by allowed as expenses. (AY. 2011-12)
Surat District Co.op. Bank Ltd. v. ACIT (2023) 202 ITD 624 (Surat) (Trib.)
S. 37(1) : Business expenditure-Gifts-Customers on occasion of new year and festivals-Allowable as business expenditure-Gifts given to directors and to government employees would not be allowed as expenses.