Case Law Details
DCIT Vs EIH Associated Hotels Ltd. (ITAT Kolkata)
It is noted that the staff recruitment expenses were incurred only exclusive for the purpose of business and hence allowable expenditure. We note that the expenses on account of employees’ relation expenses to the tune of Rs. 3,78,242/- was incurred for efficient functioning of the business which pertains to employees meals on duties, medical expenses, medical insurance, uniform expenses etc. and these expenses are incidental to carrying on the business which is crucial in the hotel industry. Therefore, it satisfies the condition that it was expended wholly and exclusively for the purpose of business and thus allowable u/s 37(1) of the Act. Therefore, we confirm the order of Ld. CIT(A) and this ground of appeal raised by the revenue is dismissed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the Revenue against the order of Ld. CIT(A)-8, Kolkata dated 29.04.2018 for Assessment year 2004-05.
2. Ground No. 1 is against the action of Ld. CIT(A) in deleting the addition made by the AO amounting to Rs. 90,58,372/- on account of proportionate interest in respect of investment in shares.
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