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TMI Blog1989 (5) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... Co Rs. 10,000 Sri S. Govardhanreddy 2. Phippson & Co Rs. 10,206 Smt. Koganti Laxmikantam . Calcutta Rs.20,206 . During the proceedings before the ITO, it was contended by the assessee, by its letter dt. 27th July, 1983 that firstly the receipt is of casual nature and hence it is exempt from tax. Secondly, it is contended that the expenditure was incurred for purpose of acquiring knowledge about marketing of the liquor products and to learn the technical know-how in processing of liquors and beers, for which the assessee-firm is a wholesale dealer. A reading of the ITO's order dt. 30th Sept., 1983 under s. 143 would show that he considered only one aspect viz. whether the receipt should be considered as a benefit or a perquisite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r processing techniques. Even in respect of the Managing Partner in the firm. She found that it does not appear to her a tour under taken for the benefit of the business in view of the fact that the appellant is unable to furnish details of the places visited by the Partners or the kind of information or experience gathered and the use to which such information etc. had been put in the conduct of the business. Ultimately, she found that it is difficult for her to conclude that the tours were undertaken with a view to benefit the business conducted by the assessee. Thus, she dismissed the claim of the assessee for deduction of this amount. 2. Hence the second appeal by the assessee. We have hear Shri M.J. Swamy, learned advocate for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was incurred for legitimate business purpose is simply ipse dixit, and does not contain any reason whatsoever why the expenditure cannot be so considered. The learned CIT(A) during the course of hearing did not call for any explanation from the assessee to prove what sort of business purpose was served by going to Singapore, Bangkok and Hong Kang. Had such an explanation been sought, the assessee would have an opportunity to further explain itself about the allowability of the expenditure and in the absence of any such specific question either from the ITO or from the CIT(A) the assessee would be put to a disadvantage. Further he contends that in any view of the matter if the Tribunal is going to hold that the receipt is income in the ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kets. Therefore, Shri Swamy contended firstly that the free air ticket is a receipt of casual nature and cannot be termed as income in the hands of the assessee. This argument cannot be accepted. The scheme is a public one. So it should be taken as a public offer and whoever fulfilled the conditions of the offer is entitled to get benefits of the officer. Whoever fulfilled the conditions of the offer is deemed to have accepted the contract and at the time of acceptance, the contract came into force. Even though there is no such contract under s. 28 (iv) which came into force w.e.f. 1st April, 1964, the value of any benefit or perquisite whether convertible into money or not arising from business should be deemed to be a profit arising out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is to provide a free air ticket without having any aim to achieve by the whole sellers or retailers who achieved the targeted sales then they would not have insisted the visit to the 3 specified foreign cities viz,. Singapore, Bangkok and Hongkong. It would also be difficult for the Reserve Bank of India to release foreign exchange unless it is also specified that some business purpose would be served by the foreign trips undertaken. It is most unlikely that the two manufacturers who evolved the schemes would be interested only to provide trips to their whole sellers and retailers. It is not the case of the Department that Hongkong, Bangkok and Singapore are not places where high technique for marketing hot drinks like Wines and Spirits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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