Commissioner of Income Tax vs Harchand Rai Chandan Lal

D.K. Jain, J.

At the instance of the revenue, the Tribunal, Delhi Bench-E, (hereinafter referred to as ''the Tribunal''), has referred the following question, u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as ''the Act), arising out of IT Appeal No. 2660 (Delhi) of 1975-76, pertaining to the assessment year 1973-74, for opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the expenditure of Rs. 8,403 claimed by the assessed as messing expenses on its constituents was not entertainment expenditure within the meaning of section 37(2B) of the Income Tax Act, 1961 and in allowing a deduction for the same as business expenditure for the assessment year 1973-74".

The assessed remained un-represented.

Since answer to the question referred is concluded by the decision of this court in Commissioner of Income Tax Vs. Rajasthan Mercantile Co. Ltd., India Tourism Development Corporation Ltd. and Gulshan Kumar Vijay Ku, , affirmed by the Supreme Court in CIT v. Patel Bros. & Co. Ltd. : [1995]215ITR165(SC) , we deem it unnecessary to state the facts.

Following the said decisions, the question referred is answered in the affirmative, i.e., in favor of the assessed and against the revenue.

The reference stands disposed of with no order as to costs.