1979 (2) TMI 93

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....D. M. CHANDRASHEKHAR C.J.-At the instance of the revenue, the Income-tax Appellate Tribunal, Bangalore Beach (hereinafter referred to as " the Tribunal "), has referred under s. 256(1) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), the following question of law: " Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the ....

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....g anything contained in this section, no allowance shall be made in respect of expenditure in the nature of entertainment expenditure incurred within India by any assessee after the 28th day of February, 1970." The object of inserting sub-s. (2B), as explained by the Finance Minister, while presenting the Budget for the year 1970-71, was to curb ostentation and extravagance at the expense of th....

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....e bank and its customers. In these circumstances, it would be too pedantic to say that serving a cup of coffee or tea to a customer who comes to the bank during business hours for transacting business, constituted entertainment. It would be more reasonable to treat the expenditure on serving coffee and tea as expenditure incidental to the assessee's business. Hence, such expenditure should be rega....