1993 (4) TMI 13 - HC - Income Tax

Advertisement Expenditure, Business Expenditure, Expenditure On Advertisement, Income Tax Act, Income Tax Rules, Question Of Law

Summary

The High Court of Bombay dismissed an application under section 256(2) of the Income-tax Act, 1961. The court upheld the Tribunal's decision that expenditure on articles intended for presentation is not subject to disallowance under rule 6B(1)(a) of the Income-tax Rules, 1962. The Tribunal found that the presentation articles did not serve as advertisement for the company, making rule 6B inapplicable. The assessment year was 1979-80, with a disallowed sum of Rs. 10,905. The court discharged the rule with no costs.