TMI Blog2010 (10) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the order of the ld. CIT(A) dated 25.1.2000. The assessee is a Public Sector Undertaking and is engaged in the business of procurement of drugs, medicines and equipments and their distribution to various Government Hospitals on behalf of the Government of Tamilnadu and also running hi-tech diagnostic facilities at Government Hospitals. It was noticed that the appeal is time barred by 120 days for which a condonation petition supported by a duly attested affidavit of the competent authority has been filed. The reason mentioned is that during that period due to spread of chikungunya, the entire resources of the company were concentrating on the procurement and distribution of essential medical items for the State of Tamilnadu and the del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l facilities at hospitals, improving the skills of the doctors and paramedical staff etc. But the Assessing Officer rejected the contention of the assessee and observed that even if no depreciation has been claimed by the assessee only, the items of such expenditure are not linked to the earning of income by of the company and the supply of equipments etc. to Government hospitals cannot be treated as sales promotion and hence, is not a revenue expenditure. The ld. CIT(A) has demonstrated the complete details of the customer care ledger account as on 31.03.1999 which has been reproduced in his order at pages 3 4, but at the end he has also sustained the addition of ₹ 29,54,125/- only by allowing ₹ 3 lakhs which is an expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would like to refer para 8 9 of the Tribunal order(supra) which read as under: 8. Similarly, the Hon'ble Madras High Court in the case of Cholan Roadways Corporation Ltd. v. CIT (supra), has held that contribution towards Flag Day Fund and rehabilitation fund of Chief Minister is allowable business expenditure because they are not in contravention of any law. Again the Hon'ble Madras High Court in the case of Madras Refineries (supra), where some expenditure was incurred by the Assessee company for gaining good will of the people living in and around its Industries by providing fund for establishing drinking water facility. The expenditure was held to be allowable. 9. Following the above precedents, we are of the view that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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