1971 (12) TMI 37

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....he Department and the other at the instance of the assessee, are as follows : " 1. Whether, on the facts and in the circumstances of the case, the amount expended by the assessee for the maintenance of a guest house at Sirpur is entertainment expenditure within the ambit of the proviso to section 10(2)(xv) of the Income-tax Act, 1922 ? 2. Whether, on the facts and in the circumstances of the....

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....was upheld by the Tribunal. Hence the reference on this question at the instance of the Department. The Tribunal has also found that Sirpur is an out of the way place and that as there are no boarding, and, lodging facilities for its constituents and its employees or such other, persons who go there for the purpose of business with the company, the assessee has to provide them with food and she....

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.... On appeal, the AAC allowed this item while the Tribunal, on further appeal, disallowed the same. Hence, the reference at the instance of the assessee. It is rightly contended by the learned counsel for the Department that if it is an expenditure incurred in respect of its business, it should have been claimed during the relevant assessment year and this obviously has not been done and if it is....