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TMI Blog1992 (9) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... miscellaneous expenses": (i) Rs. 15,513 on account of dinner & lunch to staff (ii) Rs. 10,358 on account of marriage presentations. (iii) Rs. 1,000 on account of expenses paid for higher education. The ITO made the disallowances as detailed above on the ground that those were not incurred wholly and exclusively for the business of the assessee. In appeal the learned CIT(A) confirmed the disallowances on the aforementioned ground. 4. The learned counsel for the assessee has vehemently urged that the above mentioned expenses were incurred in connection with the business of the assessee and with a view to maintain good relations with its employees. It was submitted that from that angle all the above expenses had been incurred wholly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, silver glasses, hearing machine given to the retiring employees and/or at the occasions of the marriages of the sons or daughters of the employees. In our opinion, presentation of such type of gifts by the employer to the employees at the auspicious occasions of marriages of daughters or sons of the employees is quite customary. That would be allowable expenditure. The same is hereby allowed and the addition is deleted. 7. On the request of the son of an employee the assessee-company made payment of Rs. 1,000 towards MBA tuition fees and claimed the same as an allowable expenditure. The application at page 32 and the notings on such application along with the receipt issued by the Institution clearly support assessee's case. Reimbursing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been paid on account of brokerage of commission to M/s McDowell & Co. Ltd. Thus, the learned CIT(A) confirmed the consideration by the ITO of the amount of Rs. 23,79,000 under s. 37(3A) but since similar expenses under marketing, etc. were also there which required consideration by the ITO for the purposes of making disallowance under s. 37(3A), he set aside the assessment on the point with the direction to the ITO that other amounts, if any, due to marketing, etc. and which might be covered under s. 37(3A) may also be considered and disallowance may be worked out afresh after taking into account the total of such amounts alongwith other amounts as shown in the assessment order. 9. The contention of the learned counsel for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Marketing Corporation Ltd. That had been done at the instance of the assessee-company as is evident from the letter dt. 8th July, 1983 placed at page 52 of the Paper book. The parties had agreed that for the services to be rendered by the McDowell & Co. Ltd. the assessee-company would pay Rs. 65 per case of products supplied to the Tamil Nadu State Marketing Corporation Ltd. Such an arrangement was effective from 12th July, 1983. It may thus be appreciated that it was in consideration of the services rendered by M/s McDowell & Co. Ltd. to the assessee that the assessee-company had made a payment of Rs. 23,79,000. The aforementioned payment would not be covered by the scope of s. 37(3A) of the Act on the ground that the services rendered b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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