1992 (11) TMI 62

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..... the Income-tax Tribunal has referred, under section 256(1) of the Income-tax Act, 1961, the following question of law to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that expenditure incurred by the assessee on providing tea, cold drinks, etc., to the customers was not in the nature of entertainment expenditure and thereby u .....

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..... ome, as entertainment expenditure, which is not eligible for deduction in view of the provisions of section 37(2B). The Income-tax Officer, while completing the assessment, treated the expenditure incurred on customers as entertainment expenditure, whereas he allowed the expenditure incurred on the assessee's own staff as business expenditure. In this view of the matter, he disallowed an amount of .....

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..... stomary courtesy extended to its customers, as not falling within the description of " entertainment expenditure " as contemplated in section 37(2B) of the Income-tax Act. Accordingly, the Revenue's appeal on this point was dismissed. At the instance of the Department, the aforesaid question of law has been referred. It is not necessary to refer to the decisions of various High Courts where diffe .....

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