1987 (3) TMI 23

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....eference under section 256(1) of the Income-tax Act, 1961, is : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the expenditure on the foreign trips of the assessee's minor daughters and Dr. Madan, met by the companies, in which the assessee was a director, could not be said to be an obligation which, but for such payment, would....

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....igh Court decision in the case of CIT v. Nar Hari Dalmia [1971] 80 ITR 454, in support of the Department's case for disallowance. Shri Patel, learned counsel for the assessee, on the other hand, submitted that the question was squarely covered by this court's decision in the case of CIT v. Shri Rammath A. Podar [1978] 112 ITR 436. Shri Jetly, it may be stated, made an attempt to distinguish this c....

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....d. " On going through this court's decision in Ramnath A. Podar's case [1978] 112 ITR 436, we find that the ratio of the decision is squarely applicable in this case. No doubt, the expenditure involved in that case was that of the wife of the assessee, a director in the company. The reason given for not treating such an expenditure as the income of the assessee is (i) there is no warrant for tr....