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TMI Blog1985 (12) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... . Arora, learned counsel for the Revenue, has not opposed the application. Paper books in this reference have already been submitted by learned counsel for the assessee. At the request of learned counsel appearing for the parties, we have heard the arguments. The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (for short the Tribunal "), has referred the following question for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 11,310 under the head 'Entertainment expenses' and Rs. 4,718 under the head 'Guest house expenses' for providing hot and cold drinks, refreshment, etc., to the customers and 'veoparies' was entertainment expenditure under section 37(2B)? " The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer as the appellant failed to file details of expenses for the particular purpose despite specific opportunity afforded to him. So, it was inferred by the Income-tax Officer that no such details were maintained. In his opinion, it was entertainment in nature and clearly disallowable. He accordingly added a sum of Rs. 4,718. 8. In view of the non-production of details before the Income-tax Officer, I do not see any reason to interfere at this stage. 9. Next ground of appeal is regarding disallowance of expenses of Rs. 11,310 under the head 'Entertainment expenses'. Here also no particulars were furnished before the Income-tax Officer or before the Inspecting Assistant Commissioner in spite of specific opportunity afforded to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that have been laid down in Patel Bros. Co. Ltd.'s case [1977] 106 ITR 424 (Guj) appear to us to be correct for determining the nature of entertainment expenses. Patel Bros. Co. Ltd.'s case [1977] 106 ITR 424 (Guj) has been followed by the Bombay High Court in Shah Nanji Nagsi's case [1979] 116 ITR 292 and other High Courts referred to hereinabove. We respectfully agree with the view taken by the Gujarat High Court in Patel Bros. Co. Ltd.'s case [1977] 106 ITR 424 (Guj). " It will be clear that the Division Bench in Devichand Bastimal's case [1985] 156 ITR 166 (Raj) has relied on CIT v. Patel Brothers Co. Ltd. [1977] 106 ITR 424 (Guj), wherein the following four tests were laid down for determining the nature of entertainment exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 11,310 and " guest house expenses " amounting to Rs. 4,718 for providing hot and cold drinks, refreshment, etc., to the customers and veoparies are entertainment expenditure under section 37(2B) of the Act. Mr. B. R. Arora, learned counsel for the Revenue submitted that the Tribunal has not given a specific finding as to the aforesaid two amounts claimed by the assessee as entertainment expenses in their entirety. It may be recalled that the Income-tax Officer as well as the Appellate Assistant Commissioner, after holding that the aforesaid two amounts claimed by the assessee are entertainment expenses, observed that they cannot be allowed in the absence of any specific details being given by the assessee, which according to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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