Expenditure incurred towards membership fee paid by company is allowable as revenue expenditure

10
02/2021

Expenditure incurred towards membership fee paid by company is allowable as revenue expenditure

In M/s ISGEC Heavy Engineering Ltd. vs The DCIT, the Income Tax Appellate Tribunal referring to the Hon’ble Apex Court in the case of CIT Vs. United Glass Mfg. held that we find that a series of judgements have been passed by High Courts holding that club membership fees for employees incurred by the assessee is business expense under Section 37 of the Income Tax Act, 1961.

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