1980 (9) TMI 27

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....s reference under s. 256(1) of the I.T. Act, 1961 (hereinafter called " the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : " Whether the Tribunal was justified in holding that the expenditure incurred by the assessee for providing messing to its trade constituents by way of ordinary courtesy did not amount to ex....

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....see, the expenditure claimed by the assessee was excessive. The AAC, accordingly, reduced the claim to Rs. 15,000. Aggrieved by the order passed by the AAC, the department preferred an appeal before the Tribunal. It was contended on behalf of the department that the expenditure in question was in the nature of entertainment expenditure as contemplated by s. 37(2B) of the Act. The Tribunal, however....

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.... 424 (Guj). A Division Bench of the Gujarat High Court held that the term " entertainment " in the context of s. 37(2B) of the Act on its true construction and meaning would include the acts or practice of receiving and entertaining the strangers and friends ; but if the acts or practice of being hospitable in the sense of providing meals, drinks or other wants of guests are a part and parcel of t....