Question ID :
44740
082701
A restaurent has been opened (additional branch of existing franchisee) Expenses incurred on inaugration includes Hotel and travelling expenses of family members. Whether these can be amortised/capitalised
Posted by
Mahesh Kumar
on
Oct 16, 2024
Filed Under
DIRECT TAXES
the hotel and travel expenses of family members cannot be treated as capital or amortizable expenses. They should be regarded as non-deductible personal expenses.
Posted by
CA. SURAJ KUMAR CHOUDHARY on
Oct 22, 2024
Answer ID :
85557
On a broad interpretation of section 37 it may be claimed as an expenditure since the visit by family members is not for their personal purpose but have an ultimate business purpose. A risky claim indeed. definitely not a capital expenditure.
Posted by
SIVADAS CHETTOOR on
Jan 03, 2025