1981 (12) TMI 63

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....iness in the publication of books in the form of novels and pocket books, has raised the objection that the Commissioner (Appeals) was not justified in confirming a disallowance of Rs. 10,000 paid towards medical aid to Shri Gulshan Nanda by the assessee-company. The year involved is 1978-79 for which the relevant accounting period was the year ending31-3-1978. 2. The assessee-company publishes....

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....0,000 towards the medical expenses of Shri Gulshan Nanda. The ITO, however, considered that the said sum of Rs. 10,000 paid to Shri Nanda was in the nature of a charity or a donation and he, therefore, did not allow the deduction of the same. 3. The assessee took the matter in appeal before the Commissioner (Appeals). It was submitted before him that the payment was not by way of charity or a d....

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....elfare of an employee, he must be on the roll of the assessee. It was on record that the beneficiary was writing novels which were published by the assessee-company as publishers and the assessee-company had made considerable profits out of such writings. There was a relationship of author and publishers between the payee and the assessee-company. The payment made for the welfare of an author was ....