Deduction

Well, Aman very pertinent question indeed. If the entertainment of clients in hotels is for business purpose deduction will be available.

Incentive paid to article assistant for clearing exam at first attempt may not be looked in favour of the assessee and get disallowed as it is optional.

Wait for other views.

Regards,

entertainment for client is for business purposes , therefore allowed.

however, according to me this kind of incenive seems to be of personal nature, therefore disallowed

as the question regarding payment to article in passing first attempt is allowed.....the same question is asked by icai in ipcc exam...the attempt is not accuratley remembered by me but i m sure it will be allowed.........

i will try to check it out and confirme........

the question is given in practice manual of taxation of ipcc...question no. 3.....

and there is clearly mentioned that incentive to articled assistant for PASSING IPCC exam in their first attempt is deductible under section 37(1).