COMMISSIONER OF INCOME TAX Vs. ARVIND MILLS LIMITED

JUDGEMENT

(1.) THE Tribunal, Ahmedabad has referred the following two questions for the opinion of this Court under S. 256(1) of the IT Act, 1961 :

(2.) THE matter relates to the asst. year 1977 78. In the relevant previous year, the assessee claimed deduction of Rs. 9,675 as expenditure incurred on refreshment, etc., which was disallowed by the ITO. The CIT(A) however, allowed the same, which decision came to be confirmed by the Tribunal. The relevant previous year was 1976 77. Expln. 2 was inserted in S. 37(2A) retrospectively w.e.f. 1st April, 1976 and it reads as under :

(3.) IN view of the above decision taken by this Court in a similar context, we hold that the Tribunal was right in coming to the conclusion that the assessee was entitled to deduction in respect of the sums paid for using the trade mark "Tebilized". Question No. 2 is, therefore, answered in the affirmative in favour of the assessee and against the Revenue. This reference stands disposed of accordingly with no order as to costs.