COMMISSIONER OF INCOME TAX Vs. THANGAMALIGAI

JUDGEMENT

(1.) AT the instance of the Revenue, a common question of law has been referred to us in relation to the asst. yrs. 1984-85 and 1985-86 of the assessee and the question reads as under :

(2.) THE issue that arises for consideration is whether the expenditure incurred by the assessee by way of presenting the gift articles to the subscribers of chit at the time of joining the scheme and at the time of conclusion of the chit would amount to sales promotion expenses. A similar question was considered by this Court for the earlier assessment year in the case of same assessee and this Court by its order in T.C. No. 1216 of 1987 dt. 29th April, 1999, held that the expenditure would be of sales promotion expenditure and subject to the ceiling under S. 37(3A) of the IT Act. I