Itr/15/1993 Of Bombay Oil Industries Pvt.ltd v. Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX REFERENCE NO.15 OF 1993The Bombay Oil Industries Pvt.Ltd...ApplicantVs.Commissioner of Income Tax..RespondentMr.A.K.Jasani i/b.Ashok Boghani & Co. for theApplicant.Mrs. Anamika Malhotra for the Respondent. CORAM :- DR.S.RADHAKRISHNAN &S.J.KATHAWALLA, JJ.DATE : 21ST AUGUST, 2008P.C.1.Heard the learned Counsel for the parties.The above Reference pertains to A.Y.1984-85. TheIncome Tax Appellate Tribunal has referred thefollowing substantial questions of law for the opinionof this Court.1. Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was justified in treatingthe expenditure of Rs.11,83,295/- in questionas in the nature of entertainment expenditureas envisaged by the provisions of Section37(2A) read with Explanation (2) thereof?2. Whether the Income Tax Appellate Tribunalwas justified in law in not distinguishing theaforesaid expenditure which was nature of quidpro quo to distributors for boosting salesover certain limits from entertainmentexpenditure?3. Whether on the facts and in thecircumstances of the case, the Tribunal wasjustified in holding that the expenditureamounting to Rs.7400/- incurred by theassessee for issue of gift coupons to thedistributors and dealers by way of quid proquo for boosting its sales was entertainmentexpenditure within the meaning of Section37(2A) read with Explanation (2) thereof? 2. We have perused the judgment dated 2nd March,1991 passed by the Income Tax Appellate Tribunal. We have also perused the provisions of Section 36 and 37 of the Income Tax Act. 3. Mr.Jasani referred to the judgment of the negative and in favour of the Assessee and against the Revenue. (S.J.KATHAWALLA,J.) (DR.S.RADHAKRISHNAN,J.)