Business promotion expenditure incurred during the course of business is allowable expenditure

Finesse International Design Pvt. Limited Vs DCIT (ITAT Delhi) ITAT Delhi held that business promotion expenditure incurred for improving the visibility of the brand and sale of the products is routine expenses incurred during the course of the business. Accordingly, the same is allowable expenditure. Facts- Post search operation and recording of statement, AO sought an explanation from the assessee as to why an amount of Rs. 16,25,825/- for payment of salaries, incentives paid to drivers, helpers and guards excluding office expense be not disallowed u/s 37 of the Act. Post reply, AO observed ...