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TMI Blog1976 (8) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... er under s.37 (2B) of the Income-tax Act 1961. 2. The assessee is a commission agent in fresh fruits. The assessment year under appeal is 1971-72 of which the relevant previous year was the financial year ended on 31-0371. In this year, the assessee had claimed a sum of Rs. 7,500 under the head "Beopari expenses" spent on in running a Mess for the beoparies. The Income-tax Officer treated the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri R.K. Chaufla, submitted that s. 37(2B) enacts an absolute bar to the allowance of any entertainment expenses, notwithstanding that such expenses are incidental to business, He relied on the decision of the Allahabad High Court in the case of M/s. Briji Raman Das, Varanasi vs. Commissioner of Income-tax in which it was held by that High Court that the expenditure in offering tea, cold drinks, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is a commission agent in fresh fruits and as a clientele in the outlying agencies. The assessee's constituents from the outlying agencies have to stay on either for lunch or for dinner. The assessee is running a mess or kitchen to provide them with meals etc. In the case of Devi Singh Bondhu Mal, relied on by the Appellate Assistant Commissioner, a Delhi Bench of the Tribunal considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner was, in our opinion, justified in allowing the assessee's claim to the extent of Rs. 5,000 on account of expenses incurred in running the kitchen for this purpose. 7. The decision of the Allahabad High Court in the case of M/s. Briji Raman Dass Sons, is distinguishable for two reasons. Firstly, it is not a case of commission agent. Secondly the nature of expenses in tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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