TMI Blog2009 (12) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee at the instance of the State to promote its business at a village known as “model village” in Mysore district under the aegis of Mysore Zilla Panchayath, Swasthi Gram Yojana. The claim was disallowed by the Assessing Officer only on the ground that the amount spent by the assessee in a sum of Rs.15 lakhs is not for its business purpose. Therefore, the same was disallowed. Tribunal allowed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s total income of Rs. 2,58,41,720. The return was taken for scrutiny. The Assessing Officer disallowed the claim of Rs. 15 lakhs spent by the assessee under the head "Miscellaneous expenses" which was incurred by the assessee at the instance of the State to promote its business at a village known as "model village" in Mysore district under the aegis of Mysore Zilla Panchayath, Swasthi Gram Yojana. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 203, has no application to the facts of the case on the ground that in that case when the Transport Corporation on the request of the State Government, the amount was spent by it and, therefore, it was held that the amount spent by the other corporation was for the benefit of the public and does not violate the public policy. The Income-tax Appellate Tribunal rejected the claim of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ammes of the State Government, which would facilitate to carry on its day-to-day business activity and thus such contribution would be an allowable expenditure under section 37 of the Act ? (ii) Whether the expenditure claimed by the assessee towards contributions made to Swasthi Grama Yojana can be claimed as exempt from tax only if it satisfies the various conditions stipulated under the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a new market to organize self-help groups that would certainly promote the business of the assessee as the assessee can lend the loan only if such establishments are there in villages. We are also of the opinion that if the assessee can spread its activities to rural parts of the State, it would cater to the needs of the people and would satisfy the purpose for which it is created by the State. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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