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TMI Blog2019 (4) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities as assessed by the Assessing Officer and hence it was disallowed by the Assessing Officer. The said finding on fact, which was upheld by the Commissioner (Appeals), ought not to have been altered by the Tribunal, holding that the issue was already found in favour of the assessee. The order passed by the Assessing Officer and affirmed by the Commissioner, disallowing a sum under the head ‘club expenses’ is liable to be sustained. - Decided against assessee Contribution made to the Employees' Welfare Fund Trust - HELD THAT:- Referring to stand of the assessee is that it was only to facilitate transportation of the employees as per the service conditions and never amounts to any diversion of funds as alleged by the Revenue. Simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring for the respondent/assessee. 3. The sequence of events shows that the assessee who is engaged in the manufacture and sale of automotive tyres and tubes filed their return on 30.11.2000, followed by a revised return; ultimately leading to the assessment finalized under Section 143(3) of the Income Tax Act vide Annexure-A order passed by the Assessing Officer on 14.3.2003. Since this was detrimental to the rights and interests of the assessee, it was taken up in appeal. The appeal was finalized by the Commissioner, Income Tax (Appeals) as per Annexure-B order dated 21.10.2003, whereby some benefits came to be granted while some reliefs were declined. This made the assessee to file a further appeal before the Tribunal and after hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of contribution made to the Employees' Welfare Trust. 6. With regard to the payment of amounts under the head 'club expenses' the factual position discussed by the Tribunal in paragraph 11.1 of Annexure-C discloses that the assessee had paid a sum of ₹ 8,43,483/- to various clubs of which ₹ 6,63,748/- was by way of subscription fee, while the remaining ₹ 1,79,735/- was for club services and facilities. As a matter of fact, the assessee claims the entire expenses as deduction under Section 37(1) of the Act. According to the Assessing Officer, the expenses other than the membership fee were mainly food expenses and therefore they were in the nature of 'personal expenses' which is not admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of the assessee. The order passed by the Assessing Officer and affirmed by the Commissioner, disallowing a sum of ₹ 1.6 lakhs under the head club expenses is liable to be sustained. It is ordered accordingly. 8. With regard to the contribution made by the assessee to the Employees' Welfare Fund Trust , the stand of the assessee is that it was only to facilitate transportation of the employees as per the service conditions and never amounts to any diversion of funds as alleged by the Revenue. Similar question with reference to Section 40A(9) in respect of the previous assessment years has already been considered by this Court in I.T.A.No.60/2010 and answered in favour of the assessee. This being the position, similar c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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