9911796707
TMI Blog1999 (4) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ted February 24, 1984, in ITA No. 197/Ahd of 1982 relating to the assessment year 1979-80 have been referred to this court for its opinion : 1. "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in disallowing the gratuity liability of Rs. 75,644 claimed by the appellant under section 28 an*d/or under section 37 of the Act ? 2. Whether, on the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account or under section 37 where the method of accounting adopted by the assessee is the mercantile system. However, with the insertion of section 40A(7) the position materially altered and no deduction in computing the income under the head "Profits and gains" of the year of account by way of provision for gratuity can be allowed except in accordance with the conditions specified in clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aggregate expenditure incurred by an assessee on advertisement, publicity and sales promotion in India at a scale provided under that provision if the total sum of such expenses exceeded Rs. 40,000. The assessee's contention in the present case is that the supply of danglers, posters, etc., to its dealer was neither advertisement nor by way of publicity or by way of sales promotion but such expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the consumers, for whom it would be possible to locate the dealer who deals in these items. It certainly subserves the purpose of advertisement and publicity. Therefore, these items would fulfil the test of advertisement or publicity. The function the items perform have to be taken into consideration. It cannot be said that the functional use of these items could be divorced from the element ..... X X X X Extracts X X X X X X X X Extracts X X X X
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