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TMI Blog1982 (1) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... 150: (1978) 111 ITR 134 (P H), he realised that an error had occurred in allowing the assessee Rasoi expenses amounting to Rs. 11,692. According to the aforesaid decision, the amount incurred on Rasoi Expenses, being entertainment expenses, were not saved on the ground that the expenditure was under taken to extend customary hospitality. He therefore caused a notice u/s 154, to be served on the assessee. This notice was dated 19th August 1980 which was served on the assessee on 21st August 1980. The notice called upon the assessee to show cause as to why the error apparent from the record in the assessment order should not be corrected regarding the allowance made in respect of the rasoi expenses. The assessee filed a reply in which he res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red on providing food and refreshment by a businessman to his constituents was not considered to be entertainment expenditure by their Lordships of the Gujarat and Madras High Courts. No doubt, the Punjab and Haryana High Court had held this expenditure to be entertainment expenditure and, therefore, further held that, being entertainment expenditure, was not to be allowed as business expenditure. Since there was a divergence of views, withdrawal of allowance under the guise of rectification u/s 154 was an error committed by the ITO. He referred to the decision of their Lordships in vs. R. Sonti vs CIT, West Bengal (1979) 117 ITR 838 (Cal), where their Lordships had observed "If there is divergence of judicial opinion on a question of law o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue regarding the allowability or otherwise or expenditure incurred by a businessman for providing food and refreshment to his constituents was no longer an open issue as far as the State of Punjab is concerned. All the authorities are bound to follow the rule of law laid down by their Lordships in the decision of Gheru Lal Bal Chand. Therefore, the contentions of the assessee were misconceived that they claimed that the issue was debatable one. 3. Having heard the rival contention, we are inclined to find force in the submission made on behalf of the assessee. The issue regarding the or otherwise of expenditure incurred over the supply of food and refreshment by a businessman to his constituents is no longer an open issue as far as the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is observation that "it was no more debatable", made in a different context, should be read as to stop the revenue authorities from shutting their eyes the decisions given by the other High Courts in to the matter and ruled out any controversy in the matter. In our view, the counsel for the assessee has correctly supported himself by the decision of Calcutta High Court, which is stated its allowability view directly on an issue, which has similar to the one before us. We had a similar issue before us on a previous occasion in ITA No. 539/80 in the case of Hari Kishan vs ITO, where we have taken the view that the provisions of s. 154 were not applicable for the purpose of causing rectification if there were different views available on the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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