Disallowance of staff welfare expenditure resorting to adhoc base unsustainable

ACIT Vs Mitsui & Co. India Pvt Ltd (ITAT Delhi) ITAT Delhi held that disallowance of staff welfare expenditure on the adhoc basis unsustainable as AO failed to establish as to who the expenses are not incurred for business purpose. Facts- The assessee company is engaged in the business of general trading of materials & equipment required for industrial projects; commission agent acting as an intermediary between buyers and sellers who want to import, export or engaged in off-shore or domestic trading activities; and provides services i.e. information about the Indian market in general ...