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Club Admission Fees for Corporate Membership for business purposes: Revenue, Not Capital Expenditure
Case Law Details
- Case Name
- Swiss Re Services India Pvt Ltd Vs DCIT (Bombay High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Bombay High Court
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Swiss Re Services India Pvt Ltd Vs DCIT (Bombay High Court)
Conclusion: Admission fees paid to a club towards corporate membership would be a revenue expenditure because it had been incurred wholly and exclusively for the purposes of business and not towards capital account. Such expenditure only facilitated the smooth and efficient running of the business enterprise and did not add to the profit earning apparatus of the business enterprise.
Held: Assessee-company was provided with reasons to believe there was an escape of income. The reasons to believe were the entrance and s...
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