General Body Meeting Expenses Allowed as Statutory Obligation Qualifies as Business Expenditure

CIT Vs National Agricultural Co-Op. Marketing Federation of India Ltd (Delhi High court) The Delhi High Court considered an appeal involving three substantial questions of law. The first two questions related to the allowability of interest payable under an arbitral award as revenue expenditure and whether such interest could be allowed despite the provisions of Section 40(a)(i) of the Income Tax Act. The third question concerned the allowability of expenditure of ₹42,89,207 incurred on gifts, boarding, lodging, and related expenses during a General Body Meeting as business expenditure under...