9911796707
TMI Blog2024 (7) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... ction. In Britannia Industries Ltd. [ 2005 (10) TMI 30 - SUPREME COURT] the question which fell for consideration of the Supreme Court was whether the expression premises and buildings referred to in Sections 30 and 32 and used for the purposes of the business or profession would include within its scope and ambit the expression residential accommodation including any accommodation in the nature of guest house used in Sub-sections (3), (4) and (5) of Section 37 of the Act. The Supreme Court rejected the assessee s contention to hold that the intention of the legislature appeared to be clear and unambiguous, so as to exclude the expenses towards rents, repairs and also maintenance of premises/ accommodation used for the purposes of a guest h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 37 had stood enlarged to include expenditure on provision of hospitality of every kind, by the assessee to any person whether by way of provision of food and beverages or in any other manner. The Court accordingly upheld the view taken by the AO and held it to be in consonance with Section 37 (2A) read with Explanation 2 to hold that the deduction could not be allowed in respect of such expenses as entertainment expenditure u/s 37 (1) and accordingly, set aside the orders passed by the tribunal which had held that the assessee was entitled to deduction of such expenses. In these circumstances, question No. 2 would stand covered by the decision in the case of Indian Plastics Ltd. [ 1999 (8) TMI 49 - BOMBAY HIGH COURT] and would be req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held that the amounts which were expended to buy presentation articles was allowable as a deduction. We may also refer to another decision of West Coast Papers Mills Ltd. [ 2000 (2) TMI 30 - BOMBAY HIGH COURT] wherein expenses incurred by the assessee in buying presentation articles was allowed as advertisement expenses by the Tribunal which in the nature of articles like sarees, dress materials, dry fruits, silver glass etc. The view of the Tribunal was upheld by this Court in such decision. This question would stand answered in favour of the appellant and against Revenue. - G. S. KULKARNI SOMASEKHAR SUNDARESAN, JJ. For the Appellant : Ms. A. Vissanji, a/w S.J. Mehta, Advocates. For the Respondent : Mr. Suresh Kumar, Advocate. PC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the expenses incurred by the assessee towards municipal taxes, maintenance and repairs of guest-house could not be allowed as a deduction. In Britannia Industries Ltd. (Supra) the question which fell for consideration of the Supreme Court was whether the expression premises and buildings referred to in Sections 30 and 32 of the Income Tax Act, 1961 (for short the Act ) and used for the purposes of the business or profession would include within its scope and ambit the expression residential accommodation including any accommodation in the nature of guest house used in Sub-sections (3), (4) and (5) of Section 37 of the Act. The Supreme Court rejected the assessee s contention to hold that the intention of the legislature appeared to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited by the assessee under the head Sales Promotion Expenses . The Assessing Officer did not allow such claim as he was of the opinion that the expenditure incurred by the assessee was in the nature of entertainment expenditure and as such, had to be processed under the provisions of Section 37 (2A) of the Income Tax Act, 1961. The CIT (Appeals) however, was of a contrary view from the one taken by the Assessing Officer, when he reached to a conclusion that such expenditure was the normal expenses on routine courtesy and hospitality. He accordingly, allowed the claim of the assessee for deduction of the amount. The proceedings in such circumstances reached the High Court. The High Court considering the provisions of Section 37 (2A) and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curred by the assessee in arranging for a seminar of the foreign and local distributors of the assessee, with a view to boost the assessee s sale particularly in the foreign market. Since the assessee s guest house was small, accommodation was arranged in hotels and clubs. The assessee had claimed that the expenditure incurred in arranging the seminar should be allowed as business expenditure. The Court held that the seminar was arranged in connection with the assessee s business and therefore, the expenditure incurred for travel, boarding, lodging of the assessees distributors, attending the seminar and the expenditure involved in giving presentation articles to the assessee s foreign distributors was expenditure incurred in connection wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
