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TMI Blog2002 (3) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses?" - The words "hospitality - of every kind" by the assessee to any person includes every type of expenditure on entertainment. If the assessee distributes the suit lengths that cannot be taken out from the nature of entertainment expenses. Though it may be for the business, once the provision is there such type of expenses cannot be allowed. As stated earlier sub-section (2A) starts with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ift articles by treating the same as entertainment expenses?" The relevant assessment year is 1984-85. During the course of assessment, the Assessing Officer noticed that the assessee has incurred expenses on distribution of suit lengths. The Assessing Officer has invoked the provisions of section 37(2A) read with Explanation 2 of the Income-tax Act, 1961, and disallowed Rs. 19,918 on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue, submits that in view of Explanation 2 to section 37(2A) of the Act, it is nothing but an entertainment and the Tribunal has rightly disallowed this amount on entertainment. The provisions of section 37(1) provide that if any expenses are incurred for the purpose of earning income and for profits and gains of the business or profession that expenditure should be allowed. But sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o any person includes every type of expenditure on entertainment. If the assessee distributes the suit lengths that cannot be taken out from the nature of entertainment expenses. Though it may be for the business, once the provision is there such type of expenses cannot be allowed. As stated earlier sub-section (2A) starts with a non obstante clause and Explanation 2 to section 37(2A) includes eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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