TMI Blog1981 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowance of Rs. 45,000 under section 37(2) as entertainment. 2. The learned authorised representative for the assessee in detail submitted that the Travel Agents Association of India had incurred the said expenditure in fulfilment of its objects as detailed in the memorandum of association. He submitted at length that at the time of the conference of Pacific Area Travels Association (India) Chapter, more popularly known at PATA, a sum of Rs. 1,30,000 was spent on Food Festival in which about 2,000 people were hosted out with pure and simple meal comprising of different types of dishes made in India and towards the said amount of Rs. 1,30,000, the assessee had contributed a sum of Rs. 50,000, with Rs. 50,000 coming from Federation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tributed by the assessee, as assessee was one of the hosts. He placed his reliance on ACC-Vickers Babcock Ltd. v. CIT [1976] 103 ITR 321 (Bom.) and also on CIT v. Shah Nanji Nagsi's case. 4. After taking into consideration the rival submissions made by both the parties and perusing the facts carefully on record, we are unable to sustain the said disallowance of Rs. 45,000, being on account of entertainment under section 37(2). From perusal of the memorandum of association, we find that following are the objects of the assessee: (a) To take all steps which may be necessary for promoting or opposing any action affecting the aforesaid interest and in general to take initiative to secure the welfare of the Travel Trade in all respects. (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anuary 1978, jointly hosted by TAAI, FHRAI and PATA (India) Chapter, we made payment to Hotel Oberoi Intercontinental, New Delhi, for Rs. 1,30,000 for 1,800 delegates against their Bill No. 20118. This amount was disbursed from the contributions received as under: Rs. --- Travel Agents Association of India 50,000 --- Federation of Hotel Restaurant Association of India 50,000 --- PATA (India) Chapter 30,000 -------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of high dignitaries in trade, besides the local dignitaries, such as Ministers of the Central Cabinet and high officials in trade and Government, it could not by any stretch of imagination be treated as entertainment. 6. When we peruse the receipt of Rs. 50,000, we find the particulars given in the said receipt are "received cheque No. L. 0660958 for Rs. 50,000 (rupees fifty thousand only), from the Travel Agents Association of India, being their share of Food Festival of India being held during PATA conference." There is no dispute about the fact that it was at the instance of the Government of India, Department of Tourism, that the said "Food Festival" was organised which should be clear from the letter of Shri P.N. Seth, Deputy Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , representing leading world publications, have accepted our invitation." The chief guest inaugurating the said conference was the then Prime Minister, Shri Morarji Desai, who stated as under on that occasion : "... the conference brought together people of the world and made them understand each other. Tourism increases the contact of people with other countries and also helps to earn foreign exchange. Mr. Desai emphasised that the monetary consideration was only incidental and that he would not like to commercialise tourism as it would then lose its real purpose. Tourism also helps us to learn from others and to know how we appear to them, he added. He thus felt that adequate facilities should be provided for tourists and Government s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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