1987 (8) TMI 49

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..... lates to the income-tax assessment year 1974-75. The question referred for consideration is : " Whether, on the facts and in the circumstances of the case, the amount of Rs. 77,087, being the expenditure incurred by the appellant company for giving silver medals to the shareholders and silver wall plaques to the directors on the occasion of the silver jubilee celebrations of the company, is allo .....

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..... s. The consideration that was brought to bear upon the matter is that the silver mementoes presented to the shareholders and directors do not indicate connection between the business carried on by the assessee and the presentation of the mementoes. Learned counsel for the assessee, Sri Parvatha Rao, submits that although they are technically shareholders, almost all of them are sugarcane growers .....

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..... y in its business and there is nothing uncommon in the assessee-company endeavouring to recognise the part played by the shareholders in the prosperity of the company by giving them small mementoes. We do not consider that the causal connection between the business carried on by the assessee and the shareholders is demolished merely by reason of the shareholders being other than business customers .....

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