COMMISSIONER OF INCOME TAX Vs. KMW JOHNSON LTD

JUDGEMENT

(1.) THE Tribunal has referred the following question of law to this Court :

(2.) THE assessment year involved is the asst. yr. 1972-73 for which the relevant accounting period is the year ending 31st, March, 1972. The assessee is a Company. The ITO had disallowed the claim for deduction of the sum of Rs. 16,083 on the ground that the expenditure was for entertaining customers and was not admissible for deduction. Ultimately, the matter came up to the Tribunal and the Tribunal allowed the sum to be deducted from the assessee's income.

(3.) HAVING regard to the smallness of the amount involved, it is not necessary to go into an elaborate enquiry into those questions in this reference. In view of the findings of fact made by the Tribunal that the expenditure was for the purpose of business of the company., the question is answered in the affirmative. It is, however, made clear that we have not gone into any question of law in this case.