TMI Blog1977 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... icable makes no difference to the questions referred to us except that the reference will be under s. 66(1) of the Indian I.T. Act, 1922, for the first year and under s. 256(1) of the I.T. Act, 1961, for the later year. The questions for the respective years are found in para. 9 of the statement of case, but we propose to give them fresh numbers so that they may be more easily answered, since we are informed that, as far as this court is concerned, the questions referred at the instance of the Commissioner are concluded. As far as the common question for the two years at the instance of the assessee is concerned, the assessee does not press the same for the reasons which we will indicate later on. As renumbered by us, the following questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t years 1961-62 and 1962-63 (at the instance of the assessee) : " Whether, on the facts and in the circumstances of the case, was the assessee, carrying on insurance business other than life insurance, entitled to a deduction of entertainment expenses incurred by it over and above Rs. 5,000 for the assessment years 1961-62 and 1962-63 ? " As stated by the Tribunal in para. 3 of the statement of case, questions Nos. 1 to 4 pertain to rebate on corporation tax, donation to Shri Somani Trust, rebate on dividends received by the assessee from Tata Engineering and Locomotive Co. Ltd. and from Orissa Cement Ltd., and rebate being allowed on gross dividends without deduction of expenses allowed subject to verification on the footing indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral Insurance Co. Ltd. [1975] 99 ITR 243. As far as question No. 3 is concerned, the answer to it is directly within the compass of the decision in New India Assurance Company's case [1969] 71 ITR 761 (Bom). As far as question No. 4 is concerned, our attention has been drawn to two decisions of this High Court given in income-tax applications, viz., Income-tax Application No. 97 of 1975 (CIT v. B. M. Grover) decided on November 17,1975 (since reported in [1978] 115 ITR 885 (Bom)) and Income-tax Application No. 72 of 1976 (CIT v. United General Trust P. Ltd.) decided on 30th November, 1976 where after referring to the decision of this court in New Great Insurance Co.'s case [1973] 90 ITR 348 (Bom), it has been held that the deduction h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch profits and gains, since the expression used is whichever is higher and not " whichever is lower ". We do not say anything more on this aspect of the matter, since the question is not pressed. Accordingly, the questions referred to us as renumbered by us are answered as follows : Question No. 1 : In the affirmative and in favour of the assessee. Question No. 2 : In the affirmative and in favour of the assessee. Question No. 3 : In the affirmative and in favour of the assessee. Question No. 4 : The assessee-company is entitled to such rebate on gross dividends and not on net dividends after deduction of costs relating thereto. Question No. 5 : (At the instance of the assessee for both the assessment years in question) Not pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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