Advertisement expenses treated as business expenditure where publicity outgoings were incidental to trading operations.

Advertisement expenditure was accepted as business expenditure where the disputed items were treated as presentation articles and publicity-related outgoings incidental to the assessee's trading business. The nature and volume of the spending, viewed against total turnover, supported the claim, and the small disallowance was deleted.

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Issues: Whether the disallowance of Rs. 4,000 out of advertisement expenses was justified.

Analysis: The assessee's claim was supported by the nature and volume of the expenditure in relation to the total turnover. The disputed items were treated as presentation articles and publicity-related outgoings connected with the assessee's trading business, and were held to be incidental to the business carried on by the assessee.

Conclusion: The disallowance of Rs. 4,000 was deleted and the expense was allowed as a business expenditure.

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