9911796707
TMI Blog1985 (7) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ere in the nature of entertainment expenditure and not business expenditure, vide section 37(2A) and (2B) of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in disallowing hotel expenses of Rs. 809 treating the same as not a business expenditure? " The assessment years involved are 1971-72, 1973-74 and 1974-75. The assessee used to supply bare meals to the constituents who visited the business premises of the assessee. For the assessment year 1971-72, he claimed messing expenses and messing allowance to the tune of Rs. 11,153. The Income-tax Officer, in accordance with the provisions of section 37(2B) of the Income-tax Act, 1961 (for short " the Act "), disallowed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n establishing as to how and in what circumstances these expenses can be treated as business expenditure. It, therefore, reached the conclusion that the amount claimed by the assessee cannot be allowed as business expenditure. At the instance of the assessee, the Tribunal has referred the aforesaid two questions for our opinion. We take up the first question first, which need not detain us long, for, it is covered by a decision rendered in Devichand Bastimal v. CIT (D.B. Income-tax Reference No. 9 of 1977) and Bhanwarlal Manakchand v. CIT (D.B. Income-tax Reference No. 42 of 1977) since reported in [1985] 156 ITR 166 (Raj), decided on April 24, 1985, to which one of us (S. K. Mal Lodha J.) was a party. After taking into consideration the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 37(2B) of the Act. The Tribunal was, therefore, not right in holding that the messing expenses claimed by the assessee in respect of the three assessment years, namely, 1971-72, 1973-74 and 1974-75, were in the nature of entertainment expenditure within the meaning of section 37(2B) of the Act. We, therefore, answer the first question referred to us in the negative, i.e., against the Revenue and in favour of the assessee. Question No. 2: The Tribunal has stated in its order dated November 30, 1976, that before it, the learned counsel for the assessee could not succeed in showing that a sum of Rs. 809 spent as hotel expenses, was business expenditure. It, therefore, confirmed the finding of the Appellate Assistant Commissioner on thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
