2002 (3) TMI 7

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....1, the Tribunal has referred the following question for our opinion: "Whether on a proper interpretation of the provisions of section 37(2A) read with Explanation 2 of the Income-tax Act, 1961, the Tribunal was justified in disallowing Rs. 19,918 being cost of gift articles by treating the same as entertainment expenses?" The relevant assessment year is 1984-85. During the course of assessme....

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....eference, heard learned counsel for the parties. Mr. Kasliwal submits that the distribution of suit lengths is for the purpose of the business and in view of the provisions of section 37(1) of the Act, it should not be disallowed. Mr. Singhi, learned counsel for the Revenue, submits that in view of Explanation 2 to section 37(2A) of the Act, it is nothing but an entertainment and the Tribunal has ....

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....erson whether by way of provision of food or beverages or in any other manner whatsoever and whether or not such provision is made by reason of any express or implied contract or custom or usage of trade. The words "hospitality - of every kind" by the assessee to any person includes every type of expenditure on entertainment. If the assessee distributes the suit lengths that cannot be taken out....