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TMI Blog1980 (5) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... pl.) Surendranagar. 2. The facts in brief leading to this appeal, are that the assessee is a registered firm. It derived income from handloom cloth and yarn business. It filed the return of income for the accounting period ended on S.Y. 2029 relevant for the asst. yr. 1974-75 showing therein total income at Rs. 1,28,879. It claimed deductions inter-alia the deduction for a sum of Rs. 4,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the partners for such purpose and the very fact that a flat rate of payment had been made to the partners shows that the payments had no actual connection with entertainment of customers. Moreover, it had also to be examined whether entertainment to customers if any was not on lavish scale for which also no evidence had been produced. So, he concluded that in the circumstances he agreed with the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the other hand, Shri G.S. Narvekar, the ld. Deptl. Rep. stated that the authorities below are justified in arriving at their respective conclusions. He relies upon the order of the authorities below. 5. We have heard the rival contentions and gone through the records before us. From the records, it is clear to us that the turnover of the firm is approximately Rs. 25 lakhs and the income i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the business of the firm as is clear to us from the affidavits of Shri Ramanlal Bhogilal and Shri Shah Kamleshbhai Tokarshi. There is no material on the record before us to controvert the aforesaid affidavits. Therefore, we hold that the claim of the assessee is substantiated. In this situation of the matter, we hold that the amount of Rs. 4,000 is the expenditure on the mess provided to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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