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Judgment
In this application made u/s 256(1) of the Income Tax Act, 1961, the Income Tax Appellate Tribunal referred the following question for opinion of this court :
" Whether, on the facts and in the circumstances of the case, the Rasoi expenses of Rs. 20,122 were in the nature of entertainment expenditure and were disallowable u/s 37(2B) of the Income Tax Act, 1961 ?"
Learned standing counsel relying on CIT v. Patel Bros. and Co. Ltd. : [1995]215ITR165(SC) urged before us that the aforesaid question is fully covered by the said decision in which it has been held that ordinary hospitality shown by an assessee does not amount to entertainment. The Income Tax Appellate Tribunal by an order dated October 28, 1978, relating to the assessment year 1975-76 found that it was a case of ordinary hospitality, extended by the assessee. We, therefore, agree that the aforesaid question is fully covered by the aforementioned decision of the Supreme Court and following the same we answer the above question in the negative, i.e., in favour of the assessee and against the Revenue.
Record of this case be sent down to the Appellate Tribunal to enable it to pass an order conformably to our order.