COMMISSIONER OF INCOME-TAX vs PATEL BROTHERS & CO. LTD, ETC. ETC.

The Supreme Court interpreted 'entertainment expenditure' under Section 37(2A) of the Income-tax Act, 1961, determining that expenses incurred for providing meals to employees and customers in the ordinary course of business are allowable. The Court upheld the decision of the Appellate Assistant Commissioner, which had directed the Income-tax officer to allow the claimed kitchen expenses, as they were deemed necessary for business operations. The judgment clarified the application of the law prior to the retrospective amendment made by the Finance Act, 1983.