TMI Blog1992 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... was correct in law in holding that the amount of Rs. 90,771 was an expenditure incurred wholly and exclusively for the purposes of the assessee's business ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the order of the Appellate Assistant Commissioner allowing only Rs. 1 lakh out of Rs. 1,14,249 being the payment to outgoing members of the Employees' Provident Fund Trust out of the assessee's contributions and interest thereon from November 1, 1952, till July 28, 1954 ? 4. Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in holding that the expenditure of Rs. 35,621 incurred for running DCM Foot Ball Tournament was an admissible ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hire charges of furniture 13,630 Tents and shamianas 12,936 Entertainment 10,289 Printing of invitation cards 700 Other miscellaneous expenses 17,899 ---------------- 1,24,310 ---------------- The Income-tax Officer allowed the advertisement expenses while the assessee claimed the entertainment expenses as allowable only to the extent permissible under section 37(2) of the Act (sic). A sum of Rs. 90,771 was disallowed. This amount represented the expenses incurred towards stores and wages, hire charges of furniture, tents and shamianas and other miscellaneous expenses including the charges for invitation cards. The Income-tax Officer came to the conclusion that these expenses were capital in nature and were, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision of the Bombay High Court in ACC-Vickers' case [1976] 103 ITR 321 is in pari materia. In that case, the assessee claimed deduction of sum of Rs. 2,78,619 which had been spent on the inaugural function of the company's heavy engineering works at Durgapur at the hands of the then Chief Minister of West Bengal. The Appellate Tribunal took the view that the said expenditure was incurred wholly and exclusively for the purpose of the assessee's business, but came to the conclusion that a sum of Rs. 36,446, out of the aforesaid amount had been incurred by way of entertainment expenditure and, as such, the same could not be allowed as a deduction. This is for the reason that this sum of Rs. 36,446 related to bills for lodging and boarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions of the branches and sub-branches of the bank were in the nature of revenue expenditure and were admissible as deductions under section 10(2)(xv) of the Indian Income-tax Act, 1922, which is equivalent to section 37 of the 1961 Act. In view of the fact that the Tribunal has clearly come to the conclusion that the said expenditure of Rs. 90,771 had been incurred with a view to obtain publicity for its project, it must follow that the said expenditure was allowable as a revenue deduction. As regards question No. 3, in respect of the assessment years 1968-69 and 1969-70, the claim of the assessee had been allowed by the Income-tax Officer only for a sum of Rs. 1 lakh. This order was upheld by the Income-tax Appellate Tribunal. On a r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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