1982 (7) TMI 10

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..... ome-tax Appellate Tribunal, Indore Bench, has referred the following questions of law to this court for its opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the expenditure incurred by the assessee for providing meals and light refreshments to its trade customers in the normal course of business, did not amount to expenditure in .....

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..... peal, the Commissioner of Income-tax (Appeals) deleted the disallowances as made by the ITO. The Department, therefore, preferred appeals before the Tribunal, which dismissed the appeals. Hence, at the instance of the Department, the Tribunal has referred the aforesaid question of law to this court for its opinion. The question as to whether the expenditure incurred by an assessee for providing .....

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..... r on account of long-standing custom in such trade, business or profession, they would not amount to acts of entertainment. We further held that hospitality shown on account of obligation of business arising as a result of an express or implied contract or arising on account of the long-standing custom of a trade cannot amount to " entertainment ". In view of this decision, the reference has to be .....

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