11 October 2010
Experts please resolve my Querry. Whether marriage expenditure of employee incurred by the employer is an admissible expenditure in the hands of the employer? If applicable kindly specify the section under which it is allowable.
11 October 2010
Dear Any expenditure incurred by an assessee is allowable u/s 37(1), if the assessee can prove that the expenditure has been incurred for business purpose and is not illegal. In this query you need to explain the reasons and circumstances under which the assessee undertook to incur the marriage expenditure of the employee. If one can not prove this, the expenditure shall be treated as personal and be disallowed