Held that entertainment expenses\u00a0 are through banking channel hence, addition is deleted. As regards\u00a0 rebates and discounts, the\u00a0 Revenue cannot decide what constitutes reasonable expenditure-Disallowance is deleted.\u00a0 Enterprise resource planning software expense which is\u00a0 capitalised in books of\u00a0 account,\u00a0 allowable as revenue expenditure, though the claim was not made in the original or revised return. As regards advertisement expenses, such as\u00a0 purchase of\u00a0 Ice boxes, plastic tables and chairs, bearing logo, disclosed declared rate of profit\u00a0 hence\u00a0 no further disallowance can be made.\u00a0 (AY.2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Entertainment expenses-Major expenses are through banking channel-Rebates and discounts-Revenue cannot decide what constitutes reasonable expenditure-Enterprise resource planning software expense-Capitalised in books of account-Allowable as revenue expenditure, though the claim was not made in the original or revised return-Advertisement expenses-Purchase of Ice boxes, plastic tables and chairs, bearing logo-Allowable as business expenditure. [R. 46A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51938","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dvI","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=51938"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51938\/revisions"}],"predecessor-version":[{"id":51939,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51938\/revisions\/51939"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}