TMI Blog2014 (4) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... – Decided against Revenue. Deletion of disallowance of interest – Held that:- Following the decision in Commissioner of Income-Tax And Another Versus Radico Khaitan Ltd. [2004 (9) TMI 37 - ALLAHABAD High Court] – the conditions u/s 36(1)(iii) of the Act have been complied with – thus, the assessee-company was entitled to full allowance of the amount of interest paid by it on borrowed capital - Decided against Revenue. Deletion of disallowance u/s 37(1) of the Act – Held that:- the club membership fees for employees incurred by the assessee is business expense u/s 37 of the Act – Decided against Revenue. Deletion of investment allowance on distillery unit – Held that:- Following the decision in Commissioner of Income-Tax And Anothe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal is legally justified in confirming the order of CIT (A) who directed to delete the investment allowance on distillery unit, which is not allowable articles or things manufactured are listed in Eleventh schedule ?. Heard Sri Shambhu Chopra, learned Senior Standing Counsel for the Revenue and Sri Rupesh Jain appearing for the respondent along with Sri R.S. Agarwal. So far as the question 'A' is concerned, the same is covered by the decision of this Court in Income Tax Appeal No. 277/1999 in the case of Commissioner of Income Tax, Bareilly and Others vs. M/S. Rampur Distillery Chemical Co. Ltd. decided today. In as much as it is not open to the appellant to raise this question for the reason that this issue has alrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The question no. C is also covered by the decision of the Apex Court in Civil Appeal No. 6447 of 2012 in the case of Commissioner of Income Tax, Bangalore and another vs. United Glass MGF Co. Ltd. decided on 12th September, 2012. The question before the Apex Court was whether club membership fee for employees incurred by the assessee is a business expense and liable to be deducted under section 37(1) of the Income Tax Act, 1961?. The Apex Court observed that as far as the question no. 2 is concerned, we find that a series of judgements have been passed by High Courts holding that club membership fees for employees incurred by the assessee is business expense under section 37 of the Income Tax Act, 1961. We also find that none of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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