1992 (4) TMI 36

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.... of the assessment year 1967-68, 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 Tribunal is correct in law in holding the sum of Rs. 18,499 is not disallowable as entertainment expenditure?" It is unfortunate that the statement of the case as drawn up by the Tribunal l....

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....me to Rs. 18,498. The Income-tax Officer filed a further appeal to the Income-tax Appellate Tribunal. It was held by the Tribunal that the expense of Rs. 18,498 had been correctly allowed. This is the expense which was incurred by the assessee in providing soft drinks, tea, coffee, etc., to its customers, and the Tribunal was of the view that this expense did not amount to entertainment expenditur....

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....tract Or custom or usage of trade, but does not include expenditure on food or beverages provided by the assessee to his employees in office, factory or other place of their work. " This Explanation was not available at the time when the Tribunal decided the appeal. As the Explanation has been inserted with retrospective effect, the same has to be given effect to in this case. The said Explanat....