ITAT Upholds Partial Disallowance of Brand Promotion Expenses on Third-Party Firm

Parshwanath Realty Pvt. Ltd. Vs ADDL/JT/DY/ACIT/ITO (ITAT Ahmedabad) Income Tax Appellate Tribunal (ITAT) Ahmedabad has dismissed an appeal filed by Parshwanath Realty Pvt. Ltd., upholding a decision by the Commissioner of Income Tax (Appeals) that restricted the disallowance of exhibition expenses to 75%. The case centered on the interpretation of Section 37 of the Income Tax Act, which governs expenses laid out “wholly and exclusively” for business purposes. Parshwanath Realty Pvt. Ltd., engaged in building construction and civil contracting, had incurred exhibition expenses tota...