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TMI Blog1984 (6) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-company had incurred under the head ' Advertisement ' a total expenditure of Rs. 3,80,793. It is admitted by the company that an expenditure of Rs. 1,57,911 would be subject to section 37(3A). But, the rest of the expenses was claimed to be only in respect of printing and distribution of certain pamphlets and booklets which would explain the nature of the products to the doctors and, therefore, they would be excluded from consideration under the provisions of section 37(3B)(vii). The ITO and the Commissioner (Appeals) have rejected this claim. 3. In respect of the assessment year 1980-81, the total expenditure incurred by the company was Rs. 2,70,400. Out of this, it is admitted that an expenditure of Rs. 1,49,667 would be subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... booklets in respect of each product, it cannot cease to be a catalogue. Alternatively, it was submitted that these should be considered as journals. In either case, the provisions of section 37(3B) would be applicable, according to him. Shri Joy for the department, however, submitted that this expenditure could not be considered as an expenditure on catalogue or journals. 5. We have considered the facts of the case. We are unable to accept the submission of Shri Mehta that the provisions of section 37(3A) will not be applicable. That section has been very widely worded. Any expenditure incurred by the assessee on advertisement, publicity and sales promotion will be caught in the net of this sub-section. It will be impossible to hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... daily or otherwise ; a magazine ; the transactions of any society. In Ayyar's Law Lexicon, the meaning ascribed to the term ' journal ' is, " (1) A day book showing transactions by merchants, miners, tradesmen, bankers, etc., in their business ; (2) a newspaper ; (3) the daily recordings of the proceedings of Parliament or a council ". It will be seen from the above that a journal conveys the idea of recording something which has happened either in a Parliament or in the course of a business or in the country such events could be considered as news. 8. Now, section 37(3A) deals with expenditure on advertisement and publicity. Sub-section (3B) refers to journals. Sub-section (3B) operates as a proviso to sub-section (3A). Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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