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TMI Blog2017 (8) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... these members had provided for nearly 98% of the bank’s business and the expenditure was marginal as compared to the interest realised on advances made to such members by the bank and the amount of deposits made by the members with the bank. The Tribunal held that merely because there was no legal obligation to incur such expenditure would not mean that the same was not allowable business expenditure if it could be pointed out that the expenditure incurred in preserving the business connections and goodwill of business. No question of law arises - TAX APPEAL NO. 596 of 2017 - - - Dated:- 16-8-2017 - MR. AKIL KURESHI AND MR. BIREN VAISHNAV, JJ. For The Appellant : Mrs Mauna M Bhatt, Advocate For The Opponent : Mrs Swati Soparka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solutely necessary for the assessee to maintain goodwill amongst its members and to lure them to continue to do their business with the society if it give presents to its members and to commemorate silver jubilee celebrations, it could not be said that the society was not doing something as a prudent business. 5.5 Reliance is also placed in the case of CIT vs. Dascroi Taluka Coop Purchase Sales Union Ltd, 126 ITR 413 of Hon ble Gujarat High Court judgment, where it was held that the amount spent by the assessee society on purchase of stainless steel utensils and other for the purpose of tour expenses of members was considered to be business expenditure within the meaning of Section 37 of the Act. 5.6 Considering to the above s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. 3. It can thus be seen that the Tribunal accepted the assessee s version that the expenditure was incurred for the purpose of business to maintain goodwill and continuity of business being provided by important members. It was pointed out that these members had provided for nearly 98% of the bank s business and the expenditure was marginal as compared to the interest realised on advances made to such members by the bank and the amount of deposits made by the members with the bank. The Tribunal held that merely because there was no legal obligation to incur such expenditure would not mean that the same was not allowable business expenditure if it could be pointed out that the expenditure incurred in preserving the business conn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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