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TMI Blog2009 (11) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... or entertaining the guests is for the benefit of the assessee or not, has to be examined based on the records to be produced by the assessee. - 53 of 2004 connected with 58 of 2004 - - - Dated:- 23-11-2009 - MANJUNATH K. L., ARAVIND KUMAR JJ M.V. Seshachala for the appellant. Rajesh Chandra Kumar for the respondent. JUDGMENT The judgment of the court was delivered by K. L. Manjunath J.- The Revenue has come up in these two appeals being aggrieved by the order of the Income-tax Appellate Tribunal, Ban-galore Bench in I. T. A. No. 10000/Bang/1997 and I. T. A. No. 1025/Bang/ 1997 dated August 20, 2003 respectively. 2. The respondent-assessee filed the returns of income for the assessment years 1995-96 and 1994-95. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her the Tribunal was correct in holding that the attire allowances and travel accessory allowance paid to the employees can-not be treated as perquisite under section 17 of the Act ?" 3. We have heard the learned counsel for the parties. 4. The dispute in these two appeals pertain to the club expenses/membership incurred by the assessee for the benefit of its employees. 5. According to the Revenue the membership card obtained in the name of the employees, subscription paid by the company on behalf of the employees falls under section 17(2)(iv) of the Act. It is also the case of the Revenue that the company is spending huge money under the heading, attire expenses, thereby permitting its officers to purchase clothes of their choice wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, he contends that expenses incurred under this head, do not fall under section 17(2)(iv) of the Act and that such business is required in the interest of the assessee-company. 8. So far as this point is concerned, we cannot accept the arguments advanced by the learned counsel for the respondent in toto. We can understand, if the company has purchased the club membership on its own and permitted its senior officers to entertain the official guests of the company and reimbursing the expenditure incurred by such officer when-ever guests of the company were taken to the clubs and if such expenses are incurred and reimbursed, we can certainly appreciate that the company in order to entertain the company guests is required to spend th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined by the Assessing Officer. In order to find out whether the amount spent by the company would fall under the definition, attire expenses and the same has t be reconsidered by the Assessing Officer. Accordingly, we answer the said point. 10. So far as the expenses incurred by the company for providing travel accessories or communication and other accessories are concerned, we are of the view that such expenses are required to be incurred by the officers for the business promotion and for the benefit of the assessee, if the officers have spent money and if the same is reimbursed by the company, we are of the view that such expenses is for the benefit of the assessee and not for the benefit of its employees. Therefore, the said category ..... X X X X Extracts X X X X X X X X Extracts X X X X
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