1978 (4) TMI 121

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....;      This is the departmental appeal against the allowance of Rs. 3,090 as entertainment expenses. 2. The assessee claimed Rs. 2,502 as staff welfare expenses and Rs. 1,407 as business promotion expenses. The ITO considered these expenses amounting to Rs. 3,909 as entertainment expenses and holding the same as inadmissible disallowed the same 3. In appeal it was....

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.... and as the expenses are not of lavish nature, the same cannot be treated as entertainment expenses. Reliance is placed on the decision of the Gujarat High Court in the case of Patel Bros. vs. CIT(1). He has also urged that as two interpretations are possible, the one in favour of the assessee should be adopted. Reliance is also placed in the case of CIT vs. Vegetable Products Ltd.(4). 6. We ha....