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2005 (3) TMI 68 - GUJARAT HIGH COURTAdditions on account of presentation articles and sales expenses - "Whether Tribunal is right in law and on facts in deleting the additions made by the Income-tax Officer amounting to Rs. 16,121 on account of presentation articles as also an amount of Rs. 35,226 as sales expenses which according to the Income-tax Officer were hit by the provisions of section 37(2A)?" - conclusion of the Tribunal that the expenditure, viz., Rs. 16,121 cannot be termed to be entertainment expenditure is correct – conclusion of Tribunal is not corredt that the sum of Rs. 35,226 shown as sales expenditure was not entertainment expenditure so as to be hit by the provisions of section 37(2A) read with Explanation 2 to the said section - the question referred to the court is answered partly in the affirmative and partly in the negative, i.e., the Tribunal was right in law in deleting the addition by way of disallowance of Rs. 16,121 on account of presentation articles, but the Tribunal was not correct in deleting the addition by way of disallowance amounting to Rs. 35,226 on account of sales expenses
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