Allowablity of expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2012 Dear Sir,
We a Pvt ltd co., distributed some alcohol to some officers as business promotion (having bills for the same).
Can we show it as business promotion expense and will it be deductible under IT.
As the exp. is incurred holly & exclusively for the purpose of the business.

Thanks

Raj

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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03 May 2012 Yes. This expenditure is allowed under Income Tax Act. But you need to prove your stand if required, that the expenditure for for business purpose only.

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