Disallowance of club expense merely on the basis of nomenclature not justifiable: ITAT Delhi

Nijhawan Travel Services Pvt. Limited Vs ACIT (ITAT Delhi) ITAT Delhi held that disallowance of club expenditure on the basis of nomenclature of the expenditure without demonstrating it as non-business expenditure not sustainable in law. Accordingly, the club expenditure is allowed as business expenditure. Facts- The assessee, engaged in the business of operating retail shops of Adidas, Benetton and other branded goods, leasing of service apartments, sale of properties, travel business, car hiring, etc., filed its Income Tax Return (hereinafter, the ‘ITR’) declaring loss of Rs. (-) 70,20,8...