TMI Blog1997 (11) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... as referred under section 256(1) of the Income-tax Act, 1961, the following question of law for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the disallowance of Rs. 5,975, Rs. 9,750 and Rs. 4,506 being the guest house expenses, general charges and entertainment expenses, respectively ?" The dispute pertains to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Commissioner of Income-tax (Appeals), he sustained the addition of Rs. 4,506 by saying that he was completely fettered by a decision of this court in the case of Brij Raman Dass and Sons v. CIT [1976] 104 ITR 541. As regards the other amount of Rs. 10,975 the addition was sustained to the extent of Rs. 5,975 only by an estimate on the view that an amount to the extent of Rs. 5,000 must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held that the expenditure incurred in extending customary hospitality by offering ordinary meals as a bare necessity would not be "entertainment expenditure" and such an expenditure would be a permissible deduction under section 37(2A) of the Income-tax Act, 1961, as it stood prior to April 1, 1976, when Explanation 2 was brought on the statute book by retrospective amendment made in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expression "entertainment" as held by the Supreme Court, could only be decided when a proper finding of fact has been recorded by a competent authority entitled to go into this question. In these circumstances, the question referred to this court is returned back to the Tribunal who shall decide the question arising in the case afresh in the light of the observations made in this judgment an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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