COMMISSIONER OF INCOME TAX Vs. JAIPUR GOLDEN TRANSPORT

JUDGEMENT

(1.) AT the instance of the Revenue, in respect of the asst. year 1974 -75, the following common questions have been referred for the opinion of this Court:

(2.) THE answer to question No. 1 stands concluded by the decision of the Supreme Court in CIT vs. Patel Brothers & Co. Ltd. (1995) 126 CTR (SC) 132 : (1995) 215 ITR 165 (SC) : TC 17PS.43, approving the view taken by this Court in Delhi Cloth & General Mills Co. Ltd. vs. CIT (1994) 118 CTR (Del) 109 : (1994) 208 ITR 785 (Del) and CIT vs. Rajasthan Mercantile Co. Ltd. (1994) 122 CTR (Del) 56 : (1995) 211 ITR 400 (Del), where it was held that expenditure incurred on extending customary hospitality by offering ordinary meals as a bare necessity, would not be entertainment expenditure without the aid of the enlarged meaning given to the words by Expln. 2 [to S. 37(2A) of the INCOME TAX ACT, 1961] inserted w.e.f. 1st April, 1976. In this view, question No. 1 is answered in the affirmative in favour of the assessee and against the Revenue.

(3.) ACCORDINGLY , question No. 2 is answered in the negative in favour of the Revenue and against the assessee. No costs.