1998 (8) TMI 80

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....al was justified in directing the Commissioner of Income-tax (Appeals) to admit the assessee's grounds relating to the weighted deduction taken before him and dispose of the matter on merits when the same was not raised before the Assessing Officer? (2) Whether under the facts and circumstances of the case, the Tribunal was justified that the expenses incurred by the assessee in respect of the wives of the directors were necessary for the business of the assessee-company?" We have heard Mr. G. K. Joshi, learned standing counsel for the Revenue, assisted by Mr. U. Bhuyan, and Shri R. Gogoi, learned counsel for the assessee, assisted by Shri H. Roy. Shri R. Gogoi, learned counsel for the assessee, has submitted that so far as questio....

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....td. v. CIT [1979] 118 ITR 261, the apex court observed that the expression "wholly and exclusively" used in section 10(2) of the Act, 1922, does not mean "necessarily", and such expenditure, if incurred for promoting business, the assessee can claim deduction. In the case of CIT v. Navsari Cotton and Silk Mills Ltd. [1982] 135 ITR 546, the Gujarat High Court laid down certain guidelines and also some positive and negative tests for deciding whether a particular expenditure is a business expenditure and that will be taken or not. There is no dispute at the Bar regarding the proposition of law in respect of a business expenditure. Learned counsel for the assessee submits that the jurisdiction of the High Court under section 256(2) of the A....