1993 (9) TMI 16

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....ht in holding that the entertainment expenditure of Rs. 34,141, incurred outside India, was not an allowable revenue deduction in its entirety in computing the total income of the company and in restricting the same to the limits specified in sub-section (2A) of section 37 of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that no appeal lies against levy of interest under section 215 of the Income-tax Act, 1961 ? (3) Whether, on the facts and in the circumstances of, the case, the Tribunal was right in law in holding that reimbursement of medical expenses was part of salary and not perquisites for the purposes of disallowance under section 40A(5) of the Inco....

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.... 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. Section 37(2A) of the Act provides that notwithstanding anything contained in sub-section (1) or sub-section (2), no allowance shall be made in respect of so much of the expenditure in the nature of entertainment expenditure incurred by any assessee during any previous year which expires after the 30th day of September, 1967, as is in excess of the amount computed thereunder. By the said section, the Legislature prescribed a ceiling for allowance of expenditure in the nature of entertainme....