TMI Blog1985 (1) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ere made by the assessee (938 and 939/74-75) and four by the Income-tax Commissioner (939, 964 to 967 (Delhi)/74-75). The following are the questions : "(1) Whether, on the facts and in the circumstances of the case, the sums paid by the assessee in the accounting years relevant to the assessment years 1968-69 and 1969-70, to the Indian National Congress and the Swatantra Party, were allowable deductions under the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal had erred in holding that the two units of the assessee company, viz., M/s. DCM Ginning Factory, Malout, and the DCM Ginning Factory, Hissar, were entitled to the benefits of deduction under section 80J of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were allowable as revenue expenditure, having been incurred for improving the existing techniques of the assessee's business ? (7) Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 10,320 and Rs. 10,088 incurred on foreign tours undertaken by Sarvashri N. A. Patel and U.K. Choudhry for training in Japan was deductible in computing the assessee's business for the assessment year 1969-70 ? (8) Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in holding that the expenditure incurred for Dr. Bharat Ram's foreign tours to attend the meetings of the International Chamber of Commerce was fully admissible as expenditure incurred for carrying on of the business of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnament. In CIT v. Delhi Cloth and General Mills Co. Ltd. [1978] 115 ITR 659, this court has held that the expenditure incurred by the assessee in organising football and hockey tournaments was an allowable deduction under section 10(2)(xv). We take the same view. The question is, therefore, answered in favour of the assessee. Questions Nos. 4, 6, 7 and 8 relate to foreign trips of Dr. Bharat Ram, Shri Charat Ram and the employees of the D.C.M. Dr. Bharat Ram had incurred an expenditure of Rs. 42,118 for attending meetings of the International Chamber of Commerce of which Dr. Bharat Ram was the President. The Income-tax Officer disallowed A sum of Rs. 22,118 out of the said amount. The Appellate Assistant Commissioner upheld it. The Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In Beh's case, this court has considered that decision and the observation from that decision, namely, that if an assessee attends a conference with the purpose of advancing his business, profession or vocation and if the expenditure was incurred for that purpose, then certainly the deduction can be claimed under section 10(2)(xv). Question No. 8 is answered in favour of the assessee and against the Revenue. Question No. 4 is similar to question No. 8. Shri Charat Ram incurred an expenditure of Rs. 10,610 for attending the joint session of the Business Co-operation Committee of India and Japan in the year 1969-70. The Tribunal, agreeing with the Appellate Assistant Commissioner, has held that the said expenditure is of a capital nature an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses for its employees. In the years 1968-69 and 19691970, the deductions were allowed by the Tribunal as revenue expenditure as it was held that the expenses were incurred for improving the existing techniques of the assessee's business. The contention of the Revenue is that these expenses were made by the assessee for its P.V.C. plant which had already been set up in 1963, and it had also been manufacturing calcium carbide. The Revenue further contends that the expenses are in the nature of capital expenditure because they secured to the assessee company benefit of enduring nature. The Tribunal disagreeing with the Appellate Assistant Commissioner held that it was not appropriate to disallow such expenditure on training of the employe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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