2019 (4) TMI 217

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....ect of the assessment year 2000-2001. 2. Heard Sri.Christopher Abraham, the learned Standing Counsel for the appellant and Sri.Joseph Markos, the learned Senior Counsel appearing for the respondent/assessee. 3. The sequence of events shows that the assessee who is engaged in the manufacture and sale of automotive tyres and tubes filed their return on 30.11.2000, followed by a revised return; ultimately leading to the assessment finalized under Section 143(3) of the Income Tax Act vide Annexure-A order passed by the Assessing Officer on 14.3.2003. Since this was detrimental to the rights and interests of the assessee, it was taken up in appeal. The appeal was finalized by the Commissioner, Income Tax (Appeals) as per Annexure-B order dated....

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.... the said appeals are still pending. With regard to the 'first question', there are two limbs; viz., disallowance of 'club expenses' and disallowance of contribution made to the Employees' Welfare Trust. 6. With regard to the payment of amounts under the head 'club expenses' the factual position discussed by the Tribunal in paragraph 11.1 of Annexure-C discloses that the assessee had paid a sum of Rs. 8,43,483/- to various clubs of which Rs. 6,63,748/- was by way of subscription fee, while the remaining Rs. 1,79,735/- was for club services and facilities. As a matter of fact, the assessee claims the entire expenses as deduction under Section 37(1) of the Act. According to the Assessing Officer, the expenses othe....

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....s upheld by the Commissioner (Appeals), ought not to have been altered by the Tribunal, holding that the issue was already found in favour of the assessee. The order passed by the Assessing Officer and affirmed by the Commissioner, disallowing a sum of Rs. 1.6 lakhs under the head 'club expenses' is liable to be sustained. It is ordered accordingly. 8. With regard to the contribution made by the assessee to the Employees' Welfare Fund Trust, the stand of the assessee is that it was only to facilitate transportation of the employees as per the service conditions and never amounts to any diversion of funds as alleged by the Revenue. Similar question with reference to Section 40A(9) in respect of the previous assessment years has already ....