Gift not deductible as Business Expense in absence of business exigencies & failure to disclose identity of gift recipient

BMG enterprises Ltd. Vs ITO (ITAT Delhi) we observe that it is, no doubt, customary in our country to give gifts to clients which serve as expenses on business promotion. However, while examining such deduction of expenses of this nature, it is to be kept in mind that these deductions are prohibited if they are presumptive of tax evasion and meant to reduce the business profits. In the instant case, the assessee has not been able to submitted any evidences in support of its contention that the gifts were given to its various identifiable customers. So the same also remains unverified. The asse...