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TMI Blog1989 (3) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... n exercise of the powers under section 256 of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act" referred the following question of law for the opinion of this court at the instance of the assessee : "Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 7,190 could be disallowed under section 37(2B) of the Act ?" On the basis of the said referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l wherein the Tribunal took the view that the expenses incurred in regard to providing messing facilities to the customers by the assessee fell within the category of "in the nature of entertainment expenditure" and allowed the appeal and set aside the decision of the Appellate Assistant Commissioner of Income-tax and restored that of the Income-tax Officer. The Appellate Tribunal relied on a deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n with his business. It was also felt that various High Courts which took the view and agreed with the view of this court in the case of Brij Raman Dass and Sons v. CIT [1976] 104 ITR 541, have to be tested in the light of the concept of "entertainment" generally held in the society to which the enactment relates. Therefore, the said Bench was of the opinion that the said decision of Brij Raman Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5): "The upshot of the above discussion is that in our considered opinion, the case of Brij Raman Dass and Sons v. CIT [1976] 104 ITR 541 (All) has been rightly decided and with great respect to the learned judges of the Gujarat High Court and the High Courts which agree with the said view, we are of the definite opinion that the view taken by that court in CIT v. Patel Brothers and Co. Ltd. [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late Tribunal on the question referred is maintained. The assessee is not entitled for deduction of expenditure of Rs. 7,190 and the same was rightly disallowed under section 37(2B) of the Act, being expenditure in the nature of entertainment expenditure. On the basis of the view taken above, the reference is accordingly rejected in the circumstances of the case. We make no order as to costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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