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TMI Blog2024 (7) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and circumstances of the case the sum of Rs.3,25,117/- being the expenses incurred in respect of provisions of food and beverages and employee's salary for providing food and beverages at rest / guest house is allowable as deduction under section 37 (2) of the Act ? 3) Whether on the facts and circumstances of the case the expanses of Rs.3,36,246/- being 50% of the expenses incurred in organising conference of dealers is allowable as deduction ? 4) Whether on the facts and in the circumstances of the case sum of Rs.15,58,981/- being expenses incurred in buying presentation articles in allowable as deduction ?" 2. The assessment year in question is 1995-96. 3. As regards question No.1 the learned Counsel for the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... types of buildings / accommodations used for the purposes of business or profession, then it would not have felt the need to amend the provisions of Section 37 so as to make a definite distinction with regard to buildings used as guest houses as defined in sub-section (5) of Section 37 and the provisions of Section 31 and 32 would have been sufficient for the said purpose. Hence this question of law stands concluded against the appellant and in favour of the Revenue. 4. As regards second question is concerned, the same stands answered against the Appellant by a judgment which was rendered by this Court in the case of Commissioner of Income-Tax v. Indian Plastics Ltd. [1999] 240 ITR 528 (Bom.). In such case the assessee was engaged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 37 had stood enlarged to include expenditure on provision of hospitality of every kind, by the assessee to any person whether by way of provision of food and beverages or in any other manner. The Court accordingly upheld the view taken by the Assessing Officer and held it to be in consonance with Section 37 (2A) read with Explanation 2 to hold that the deduction could not be allowed in respect of such expenses as "entertainment expenditure" under Section 37 (1) of the Income Tax Act, and accordingly, set aside the orders passed by the tribunal which had held that the assessee was entitled to deduction of such expenses. In these circumstances, question No. 2 would stand covered by the decision in the case of Indian Plastics Ltd. (Supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the present case accordingly, we answer this question in the affirmative in favour of the appellant-assessee and against the Revenue. 6. As regards question No.4 is concerned, the learned Counsel for the parties would submit that this question would stand covered by decision of this Court in the appellant's own case for the assessment year 1993-94 in Income Tax Appeal No.588 of 2003 (Commissioner of Income-Tax v. West Coast Paper Mills Ltd. (2001) 250 ITR 506) wherein the Court answered such question in the affirmative in favour of the appellant and against the Revenue, when it was held that the amounts which were expended to buy presentation articles was allowable as a deduction. We may also refer to another decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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