2001 (4) TMI 68

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... diture on calendars, panchangs and diaries? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the expenditure on calendars, panchangs and diaries should be regulated only under section 37(3A) of the Income-tax Act, 1961, and in that view directing the Assessing Officer to ascertain the cost of each articles in tender (intended?) for prescription and regulate the expenditure in accordance with rule 6B? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the payment made to hotels remaining balance after disallowance under section 37(3A) cannot be further disallowed under section 37(2A) of the Income-tax Act as enterta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the aforesaid expenditure. In the fresh assessment following the direction of the Commissioner of Income-tax he has invoked the provision of section 37(3A) of the Act and disallowed accordingly. The order of the Commissioner of Income-tax under section 263 has been challenged by the assessee before the Tribunal. The Tribunal has taken the view that there is no justification to invoke the provisions of section 37(3A) for disallowance on the aforesaid expenses. The Tribunal has further taken the view that once the provision of section 37(3A) of the Act has been invoked for disallowance on the hotel expenses, no further disallowance can be made invoking the provision of section 37(2A) of the Act. None appeared for the assessee though the matt .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the balance amount under section 37(2A) of the Act? The provision of sub-section (2A) of section 37 provides and starts with a non obstante clause in respect of sub-section (1) and sub-section (2), no allowance shall be made in respect of the expenditure in the nature of entertainment expenditure incurred by the assessee, after 30th day of September, 1967, while sub-section (3A) provides for disallowance of part of the expenses which are incurred by the assessee on advertisement, publicity and sales promotion. Once the expenditure in question was treated as expenditure pertaining to sub-section (3A) of section 37, that cannot be again treated as expenditure referred to in sub-section (2A) of section 37. Therefore, there is no infirmity in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X