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TMI Blog2009 (10) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.5,000/- and a sum of Rs.1,09,620/- was disallowed treating the expenditure as that of entertainment nature – ITAT confirmed the order of AO – Assessee pleaded that expenditure disallowed by the Tribunal can be allowed under Section 37 (1) of the Income Tax Act – Held that – question of deduction under section 37(1) has not be referred to high court – therefore answer is restricted to deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature of expenditure on providing 'hospitality' and the same was thus liable for disallowance under the said section." Heard Sri Piyush Agrawal, learned counsel for the applicant, in support of the reference and Sri A.N. Mahajan, learned standing counsel for the department. The facts of the case may be noticed in brief. The assessee, a registered Firm, deriving income from sale of marble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenged by Revenue and the assessee as well before the Income Tax Appellate Tribunal who by the order dated 27th of February, 1990 allowed the appeal filed by the department, but dismissed the appeal filed by the assessee. Sri Piyush Agrawal, learned counsel for the assessee, submits that the Tribunal was not justified in allowing the deduction to the extent of Rs.5,000/- only. He submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee submits that the expenditure disallowed by the Tribunal can be allowed under Section 37 (1) of the Income Tax Act. We are of the opinion that the said question does not arise out of the reference made by the Tribunal. The question referred to this Court for opinion is restricted to the interpretation of Section 37(2A) of the Act. This being so, we find no illegality in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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