9911796707
TMI Blog1981 (12) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... d pocket books, has raised the objection that the Commissioner (Appeals) was not justified in confirming a disallowance of Rs. 10,000 paid towards medical aid to Shri Gulshan Nanda by the assessee-company. The year involved is 1978-79 for which the relevant accounting period was the year ending31-3-1978. 2. The assessee-company publishes pocket books in Hindi and Urdu. It paid a sum of Rs. 10,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITO, however, considered that the said sum of Rs. 10,000 paid to Shri Nanda was in the nature of a charity or a donation and he, therefore, did not allow the deduction of the same. 3. The assessee took the matter in appeal before the Commissioner (Appeals). It was submitted before him that the payment was not by way of charity or a donation and that it was made for business considerations and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was on record that the beneficiary was writing novels which were published by the assessee-company as publishers and the assessee-company had made considerable profits out of such writings. There was a relationship of author and publishers between the payee and the assessee-company. The payment made for the welfare of an author was not a payment to a stranger. The payee, on recovering from hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthor and it was, therefore, in the interest of the assessee-company that he was kept in a proper shape and health. Such an obligation to pay would have admittedly been on the assessee-company if the author had been on the rolls of the assessee-company and such a roll did come into existence when the various writings of the author were for the assessee-company. The intervening periods between the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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