Entertainment Expenditure

Entertainment expenditure, the expression 'enter-tainment expenditure' is of wide import. However, in the context of disallowance of 'entertainment expenditure' as a business expenditure by virtue of sub-s. (2A) of s. 37, the word 'entertainment' must be construed strictly and not expansively. Ordinarily, 'entertainment' connotes something which may be beneficial for the mental or physical well being but is not essential or indispensable for human existence. A bare necessity, like ordinary meal, is essential or indispensable and, therefore, is not 'entertainment' the expenditure incurred in extending customary hospitality by offering ordinary meals as a bare necessity, is not 'entertainment expenditure', C.I.T. v. Patel Bros., (1995) 4 SCC 485: AIR 1995 SC 1829 (1833). [Income-tax Act, (43 of 1961), s. 37(2A)]