Deduction u/s 37 allowable towards gifts given to business associates and executives

R.K. Trading Company Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that gift items given to business associates and executives qualifies as sales promotion expenditure allowable under section 37 of the Income Tax Act. Facts- The assessee has debited an amount of Rs.47,04,385/- under the head ‘sales promotion expenses’. Details were filed before the Ld. AO in regard to such expenses. It was stated that these gift items were given to the business associates and executives. However, the Ld. AO disallowed expenditure of Rs.43,87,742/- on the ground that the same are not made for business purpos...