1976 (2) TMI 98

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..... als are common, both the appeals are disposed of by this common order. 2. One common ground in both the appeals is against the disallowance of Rs. 3,000 out of remuneration paid to the Managing Director, Shri A.R. Budhia. The ITO found that the assessee had claimed Rs. 15,000 as remuneration to the Managing Director, without assigning any fresh reason; the ITO availed the earlier practice of disa .....

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..... essed figures in these two years also were figures of loss. 4. We have considered the facts of the case and we find that the business had definitely shown an improving trend and as far as the profits in these years are concerned, the ITO computed figures of profits which were reduced only as a result of carry forward of losses in the asst. yr. 1973-74 as per profit and loss account had gone up to .....

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..... tted that these expenses represent normal hospitality to customers and should not be treated as entertainment expenses. We find that no details were available for these expenses and merely it was stated that they were entertainment expenses. However, from the very volume of expenses, it appears that they could not be in the nature of entertainment and they appeared to be normal shop expenses of th .....

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