Cash gifts & presents against section 40A(3) provisions not allowable

Ms. STEAG Energy Services (I) Pvt. Ltd. Vs ACIT (ITAT Delhi)

Conclusion: Assessee was not entitled to claim gifts and presents given to the customers by way of cash as business expenditure as the same was against the provisions contained u/s 40A(3).

Held: AO made addition by disallowing the misc. expenses like Diwali gifts and presents given by the assessee on the ground that from the ledger account of gifts and presents for the respective period, it was found that gifts and presents

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