TMI Blog2004 (9) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee and the benefits derived from it so far as the present case is concerned. The appeal accordingly fails and is hereby dismissed. - - - - - Dated:- 17-9-2004 - Judge(s) : RAJESH BALIA., PRAKASH TATIA. JUDGMENT The judgment of the court was delivered by R. Balia J.- Heard learned counsel for the appellant. Though three questions have been suggested as substantial questions of law arising from the order of the Income-tax Appellate Tribunal, jodhpur Bench, Jodhpur, dated October 14, 2003, the appeal relates to deduction of one single item by way of amount laid out wholly and exclusively for the purpose of the assessee's business. The assessee has donated a bus valuing Rs. 5,12,000 to Vivaknand Kendriya Vidhyalaya, Hu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such expenses incurred for the benefit and welfare of its employees, and, therefore, is required to be allowed as the expenses wholly and exclusively incurred or laid out for the purpose of the assessee's business. Consequently, the deduction claimed was allowed as revenue business expenses. On appeal, the order of the Commissioner of Income-tax (Appeals) was affirmed by the Tribunal by following its earlier decision of this court and decisions of other High Courts. The earlier decision of this court referred to was about the money spent on construction of Maneklal Verma Rajkiya Institute. The question of claim to deduction of any amount spent by the assessee as revenue expenditure incurred or laid out wholly and exclusively for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in Sri Venkata Satyanarayana Rice Mill Contractors Co. v. CIT [1997] 223 ITR 101 and the decision of the House of Lords in Atherton v. British Insulated and Helsby Cables Ltd. [1925] 10 TC 155 laid down the following principle: "Undoubtedly, participation in any trade association or fund set up for advancement of business, which is also carried on by the assessee, interest is primarily for advancing the assessee's own business and not for philanthropic purposes. Essentially the finding, whether the expenses have been incurred wholly or exclusively for the purpose of the assessee's business, is a finding of fact. The fact that by becoming member of such association or contributing to such fund, such other participant or contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d it over to the school by the Commissioner of Income-tax (Appeals) in the assessee's own language reads as under: "As per the facts of the case this expense is allowable under section 37(1) because the bus has been given to the school to remove the difficulty of staff/workmen's children in going to the school as the bus available with the school was not sufficient to accommodate the children of workmen and as the children of workmen of company were placed at different destinations they entered the bus after others at nearer destination, hence mill staff children could not get place in the bus and the bus took more time to collect and drop the mill children. Hence to solve these problems of staff children at the request of school the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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