1988 (9) TMI 4

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..... e assessees towards the refreshments provided to customers. For the purposes of the application, we have to consider whether the amounts spent were on a lavish scale so as to be categorised as entertainment and, therefore, invite the disallowance. The Tribunal, at the second appellate stage, appears to have asked for details. The company could not furnish the necessary details but only furnished t .....

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..... missible entertainment expenditure in view of the provisions referred to by him in paragraph 5 of his assessment order. The matter was, thereafter, carried by the assessee to the Commissioner of Income-tax (Appeals) who upheld the disallowance. When the matter was carried further to the Income-tax Appellate Tribunal, it would appear that they, not having the necessary details before them, adopte .....

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..... ed purpose and if the details had not been available, he could have disallowed the same on that basis. On the basis of disallowance adopted by the Income-tax Officer, the Income-tax Appellate Tribunal appears to have adopted a rough and ready method of allowing part of such expenditure and disallowing a part. Such footing can never be perfect. Nevertheless, no question of law arises requiring us t .....

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