TMI Blog2016 (1) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has discretion to entertain the audit report even though it has not been filed with the return and give benefit of the deduction to the assessee in terms of section 32AB(1) of the Act. In view of the above, the Tribunal was justified in deciding the said issue in favour of the assessee. Expenditure incurred for employees - expenditure on food or beverages provided by the assessee to its employees in office, factory or other place of their work - whether is business expenditure and is an allowable deduction and not covered under the head entertainment expenses as held by ITAT - Held that:- Perusal of the order passed by the Tribunal shows that in the earlier years, it had allowed deduction to the extent of 50% only in respect of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cularly when the ratio of the decision of the jurisdictional High Court in the case of CIT vs. Jaideep Industries reported in (1989) 180 ITR 81 supports the Assessing Officer's action? 2. While admitting this appeal, this court vide order dated 23.2.2004 had observed that since the order of the Tribunal was in conformity with the law laid down by the Full Bench of this Court in CIT vs. Punjab Financial Corporation, (2002) 254 ITR 6, question No.(ii) did not require any further consideration. Consequently, the appeal was admitted qua question No.(i) only. 3. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The assessee filed its return of income on 19.10.1987 declaring tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partly allowed both the appeals. It allowed deduction of ₹ 65,000/- as expenditure incurred for employees relying on its own order in the case of the assessee for the earlier years. Similarly relying on the decision of this Court in CIT vs. Shahzedanand Charity Trust, (1997) 228 ITR 292, the Tribunal confirmed the order of the CIT(A) regarding deduction under Section 80HHC of the Act. Hence the instant appeal by the revenue. 4. We have heard learned counsel for the parties. 5. The following two issues arise for consideration in this appeal:- i) the amount of ₹ 65,000/- allowed by the Tribunal on account of expenditure on food or beverages provided by the assessee to its employees in office, factory or other place of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
