TaxTMI 
TaxTMI 
1993 (9) TMI 16
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....(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, at the instance of the assessee, has referred the following questions of law, which are numbered for the sake of convenience, to this court for opinion : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the entertainment expenditure of Rs. 34,141, incurred outside India, was....
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.... borrowed for advancing it to its subsidiary company was allowable under section 36(1)(iii) of the Income-tax Act ? " It is agreed between counsel for the parties that question No. 2 is covered by the decision of this court in Caltex Oil Refining (India) Ltd. v. CIT [1993] 202 ITR 375, in favour of the assessee. In view of this statement, we answer question No. 2 in the affirmative (sic) and in f....
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....ssee incurred an expenditure of Rs. 34,141 being in the nature of entertainment expenditure outside India. The question before the court is as to whether the allowability of the said expenditure is subject to ceiling prescribed by section 37(2A) of the Act. For the purpose of deciding this question, it is necessary to notice the relevant provisions of the Act as they stood at the relevant time. S....
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....ntertainment expenditure incurred in India or outside India. Sometime in the year 1970, sub-section (2B) was inserted in the Act. Section 37(2B) of the Act reads as under : " Notwithstanding anything contained in this section, no allowance shall be made in respect of expenditure in the nature of entertainment expenditure incurred within India by any assessee after the 28th day of February, 1970. ....