1997 (11) TMI 64

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....ribunal, Allahabad Bench, Allahabad, has referred under section 256(1) of the Income-tax Act, 1961, the following question of law for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the disallowance of Rs. 5,975, Rs. 9,750 and Rs. 4,506 being the guest house expenses, general charges and entertainment expenses, res....

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....tter came up for consideration in appeal before the Commissioner of Income-tax (Appeals), he sustained the addition of Rs. 4,506 by saying that he was completely fettered by a decision of this court in the case of Brij Raman Dass and Sons v. CIT [1976] 104 ITR 541. As regards the other amount of Rs. 10,975 the addition was sustained to the extent of Rs. 5,975 only by an estimate on the view that a....

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.... Ltd. [1995] 215 ITR 165. The Supreme Court has held that the expenditure incurred in extending customary hospitality by offering ordinary meals as a bare necessity would not be "entertainment expenditure" and such an expenditure would be a permissible deduction under section 37(2A) of the Income-tax Act, 1961, as it stood prior to April 1, 1976, when Explanation 2 was brought on the statute book ....