1980 (5) TMI 48

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.... partly allowed the appeal against the order dt. 26th Oct., 1975 of the ITO Ward-A (spl.) Surendranagar. 2. The facts in brief leading to this appeal, are that the assessee is a registered firm. It derived income from handloom cloth and yarn business. It filed the return of income for the accounting period ended on S.Y. 2029 relevant for the asst. yr. 1974-75 showing therein total income at ....

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....idence to prove that the amount paid represented reimbursement of actual expenses by the partners for such purpose and the very fact that a flat rate of payment had been made to the partners shows that the payments had no actual connection with entertainment of customers. Moreover, it had also to be examined whether entertainment to customers if any was not on lavish scale for which also no eviden....

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....ed to the customers by the firm in the previous year relevant for the asst. Year. On the other hand, Shri G.S. Narvekar, the ld. Deptl. Rep. stated that the authorities below are justified in arriving at their respective conclusions. He relies upon the order of the authorities below. 5. We have heard the rival contentions and gone through the records before us. From the records, it is clear ....

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....rtained by its partners as there is neither any hotel or restaurant there at the place of the business of the firm as is clear to us from the affidavits of Shri Ramanlal Bhogilal and Shri Shah Kamleshbhai Tokarshi. There is no material on the record before us to controvert the aforesaid affidavits. Therefore, we hold that the claim of the assessee is substantiated. In this situation of the matter,....