1975 (12) TMI 86

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..... lowed by ITO under s. 37(2-B). The assessee had incurred expenses which were described as refreshment expenses amounting to Rs. 41,812 for the asst. yr. 1970-71 and Rs. 41,388 for the asst. yr. 1971-72. The ITO disallowed the expenses incurred after 28th Feb., 1970, completely and in respect of the earlier period allowed only according to s. 37(2-B). The AAC however, held that the expenses consist .....

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..... o give them inducement to put in their best effort. We agree with the AAC in his classification. We also agree with him that if these expenses were only for tea, cigarettes, etc; it cannot be treated as entertainment expenses. However, no finding has been given as to the real nature of the expenses. It is, therefore, necessary, as the AAC has found, to set aside the assessments and require the ITO .....

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