TMI Blog2001 (2) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... ed authorised representative of assessee has contended that under r. 68 of Rajasthan Sahekari Sanstha Niyam 1966 the cooperative society is to transfer 25 per cent of its net profits of Reserve Fund and in compliance thereof the assessee has transferred a sum of Rs. 4,20,645 the details of amount transferred in various years is given on p. 6 of P.B. He has contended that after the transfer of amount to reserve fund, it does not remain under the control of assessee or Co-operative Society but it goes under the control of Registrar, co-operative societies. He has also referred to the order of Department of Co-operative Societies, State Government, Jaipur dt. 4th Jan., 1988, placed on pp. 18 to 20 of P.B. in this regard. He has contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to reserve fund under the statutory provisions is liable to be deducted as business expenditure. No contrary decision has been brought to our notice. In that view of the matter and considering all the facts and circumstances of the case as also respectfully following the aforesaid decision of the Hon'ble M.P. High Court we are of the considered opinion that the assessee's claim for deduction in respect of the said amount transferred to reserve fund is an allowable deduction as business expenditure. Accordingly, we direct the AO to allow deduction in respect of the said amount transferred to reserve fund. 6. Ground No. 3 disputes the disallowance of assessee's claim for deduction of Rs. 39,035 being average profit on sale of chemical f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed as per slab in s. 37(2) based on profits of society, but the previous year being of 21 months the amount of slab be increased proportionately as the slab is given from 12 months. As against this, learned Departmental Representative of Revenue has relied on the orders of the authorities below. 9. We have considered the rival contentions and the relevant material on record. The relevant provision, as applicable at the relevant time, is s. 37(2A) wherein different slabs have been provided for allowing deduction subject to the maximum deduction of Rs. 50,000. Accordingly considering all the facts and circumstances of the case, we direct the AO to apply the appropriate slab for allowing deduction as given in s. 37(2A) on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to suggest that the articles of presentation involved in the instant case had any logo or mark of the assessee's business so as to fall within the ambit of advertisement. In that view of the matter, we find the case to be covered by the aforesaid decision of Jaipur Tribunal (1992) 43 ITD 292. As such respectfully following the aforesaid decision of the Jaipur Tribunal and also considering the notification of the State Government permitting gifts within limit of Rs. 300 on the occasion of annual meeting and not exceeding gift of the value of Rs. 500 on the occasion of special anniversary, as placed on pp. 21 and 22 of the P.B. we find no justification for disallowing the aforesaid amount. We, therefore, delete the disallowance. 12. Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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