1992 (2) TMI 38

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... -In respect of the assessment year 1972-73, the Income-tax Appellate Tribunal has stated the case and referred the following question to this court : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that a sum of Rs. 7,971 did not represent entertainment expenses and they were not hit by the provisions of section 37(2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he expense which it incurred represented the cost of coarse food and conveniences which were provided to " veoparies " and employees of the firm who used to come to do business and that the expenditure was not at all in the nature of entertainment expenditure as contemplated by section 37(2B). The Tribunal came to the conclusion that the assessee was a commission agent who is required customarily ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., etc. This court held that " We would, therefore, hold that in spite of the quantum being relatively high, the expense could not be treated as 'entertainment expenditure' in the circumstances of this particular line of business". This court did not go into the larger question as to what is the meaning and full scope and extent of the expression "entertainment expenditure". Shri Gupta has ve....