Entrance fee paid to golf association in order to develop contacts with other corporate leaders is allowable business expenditure

Brief of the case:

In this case ITAT examined the issue whether fee paid to golf club on behalf of director to develop links with other corporates leaders is an allowable business expenditure. On the basis of other judicial pronouncement ITAT decided this question in favour of assessee. In an another important and major issue in this case ITAT remanded the matter to AO to examine afresh deduction claimed u/s 10A to examine whether the assessee has fulfilled the conditions stipulated in the Act and more specifically within the parameter of section 10A of the Act.

Facts of the case:

• The assessee company had five units, all engaged in providing ITeS services.

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