1978 (7) TMI 79

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....tion of Rs. 2,261 as expenses incurred under the head " fooding expenses ". The assessee is to provide food to its customers. The aforesaid amount of Rs. 2,261 was incurred in the assessment year 1973-74. The ITO held that these expenses were in the nature of entertainment expenses and were not maintainable. On appeal, however, this disallowance was limited to Rs. 500. The Tribunal agreed with the....

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....salaries were low, they were served with food also. Occasionally meals were supplied to the constituents coming from outside. The AAC held that the claim was not supported by proper evidence and details and appeared a little excessive. In this view of the matter, disallowance of Rs. 500 would be quite reasonable. Consequently, the addition was reduced by Rs. 1,761. The Tribunal upheld this view. ....