2002 (2) TMI 1277

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....B.Deb for the Appellant. ORDER B.K. Mitra, JM. - The appeal filed by the department as well as the Cross Objection filed by the assessee is directed against the order dated 2-9-1995 passed by the CIT(A) for the assessment year 1991-92. They are disposed of by a single order for the sake of convenience. 2. The grounds raised by the department are as follows : "1.For that the CIT(A) erre....

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.... of all the facts and following the order of the ITAT in the earlier year in the case of the assessee, confirmed the action of the ld. CIT(A) in deleting the disallowance. Respectfully following the said order we also hold that the CIT(A) was right in deleting the entire disallowance of Rs. 43,90,120 on account of purchase of iron scrap. 5. As regards ground No. 2, we have noticed that the asse....

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....curred was not allowable and it is not within the provisions of section 37(1) of the Income-tax Act as having not been incurred for commercial expediency of the assessee's business. 7. The Ld. A.R., on the other hand, while supporting the order of the ld. CIT(A) added that the X-ray unit was installed by the assessee in the dispensary known as 'Child and Mother Welfare Society' so that the asse....

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....of the children of the employees of the assessee-company. On a careful consideration of the facts of the case, we are of the opinion that the entire expenditure has to be considered as motivated by consideration of commercial/business expediency and the amounts so spent for setting up of schools or contribution to the hospital or philanthropic purpose was a part of labour welfare measure. The Hon'....