2010 (4) TMI 291

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..... ority on the basis of material placed before them – decision of ITAT is not wrong.
CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE JITENDRA CHAUHAN Present: Ms. Urvashi Dhugga, Advocate, for the appellant-revenue. Mr. Pankaj Jain, Advocate, for the respondent-assessee. M.M. KUMAR, J. This appeal filed under Section 260-A of the Income-tax Act, 1961 (for brevity, 'the Act'), challenges order dated 19.4.2001, passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh, in I.T.A. No. 97/Chandi/95, in respect of the Assessment Year 1990-91. The appellantrevenue has sought to raise the following substantial questions of law:- "1. Whether on the facts and circumstances of the case, the ITAT was right in law in .....

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..... s no longer res integra and the same has been answered against the respondent-assessee by Hon'ble the Supreme Court in the case of Britannia Industries Ltd. v. Commissioner of Income-tax, [2005] 278 ITR 546 (SC). We find that a similar question came up for our consideration in ITA Nos. 60 of 2001 and 23 of 2002 between the same parties. While following the judgment of Hon'ble the Supreme Court in Britannia Industries Ltd. (supra) we have answered the question against the respondent-assessee and in favour of the revenue, vide our order of even date passed in ITA No. 60 of 2001. Accordingly, while following the same reasoning and keeping in view the consistency, we answer question No. 2 in favour of the appellant-revenue and against the respo .....

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..... erusal of the aforesaid provision shows that the amount of any allowance in the nature of entertainment allowance if paid by the assessee to any of its employee or other person would qualify for deduction. Likewise, any amount of expenditure in the nature of entertainment incurred for the purposes of business or profession of the assessee by any employee or other person, has also been included in the list of deductions. The CIT(A) had taken the view that the Assessing Officer was wrong in making addition of Rs. 1,97,177/- by treating the same to be entertainment expenses because in the earlier years in the case of the assessee-respondent, 50% of expenses were allowed under Section 37(2A) by the Tribunal in I.T.A. No. 1304/Chandi/1988, decid .....

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