1979 (4) TMI 53

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..... of films. While framing the assessments for the asst. yr. 1975-76 and 1976-77, the ITO, inter alia, made the following additions to the total income of the assessee:- Sl. No. Asst. year Nature of addition Amount . . . Rs. 1 1975-76 (i) Value of free passes 8,189 . . (ii) Kharach tea etc. 2,044 .....

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..... ontended on behalf of the Revenue that both these items are in the nature of entertainment expenditure. It was submitted that the expenditure is not for business of the assessee at all and even if it is business expenditure, it is hit by the provisions of s. 37(2b) of the IT Act, 1961. Reliance was placed upon the ratio of the Punjab Haryana High Court Judgment in the case of M/s. Gheru Lal Bal .....

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..... id to be expenditure which is wholly and exclusively laid out for the purpose of the business of the assessee. It was submitted that there is no element of entertainment involved in it. 5. After careful consideration of the rival submissions, we find that in so far as the expenditure incurred by the assessee on entertainment tax is concerned, it is not of the nature of entertainment expenditure .....

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