2006 (7) TMI 179

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..... in the circumstances of the case, the Tribunal was justified in holding that the expenses of Rs. 1,71,791 (rupees one lakh seventy-one thousand seven hundred ninty-one only) could be termed as entertainment expenses or could be treated as business development expenses. The aforesaid question arose as the respondent State Bank of Bikaner Jaipur (for short as "the SBBJ") had claimed Rs. 1,71,791 .....

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..... Rs. 25 to 30 only and, therefore, it was held by the Tribunal that this amount was reasonable to be claimed towards entertainment and it had to be treated towards business development and was held allowable expenditure. The appeal of the assessee was thus allowed. The Department of Income-tax under the old provisions of the Income-tax Act filed an application for reference of the matter before t .....

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..... expenditure as business development expenditure since the amount of Rs. 1,71,791 is not an expenditure in just one branch of SBBJ but it has been spent by 400 branches of the respondent-bank which has rightly been held to be reasonable and not exorbitant or lavish in any manner. It is no doubt true that if the expenditure on entertainment by the assessee could be treated as lavish expenditure or f .....

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