2005 (7) TMI 48

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... under section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following questions of law for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the disallowance under rule 6D of the Income-tax Rules, 1962, should be computed on the basis of total expenditure on each empl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee-company on a foreign trip of the wife, who had accompanied her husband, the president of the assessee-company, who was invited to attend an advanced management programme at Harward University along with his wife. The Commissioner of Income-tax (Appeals) has recorded a categorical finding of fact that the said expenses were incurred for the purposes of the business of the assessee. Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at items of expenditure are to be considered from the point of view of a normal, prudent businessman. The test merely means that the court will place itself in the position of a businessman and find out whether the expenses incurred could be said to have been laid out for the purpose of the business. It seems that in the ultimate analysis the matter would depend on the status of the parties as spe....