COMMISSIONER OF INCOME TAX Vs. JAIPUR UDYOG LTD

JUDGEMENT

(1.) THE following questions are referred for the opinion of this Court :

(2.) THE relevant assessment year is 1971 -72. The assessee has declared income of Rs. 25,05,550. During the course of assessment, the AO has noticed that assessee has claimed expenses on account of garden maintenance at Delhi, Jaipur and Sawaimadhopur. After considering the submissions, the AO was of the view that the expenses are not wholly and exclusively for the purpose of business so far the garden maintenance at Sawaimadhopur and Jaipur is concerned and the expenses incurred on garden maintenance at Delhi, that has nothing to do with the business of the assessee. The relevant observations of the AO in para 30 read as under :

(3.) IN appeal before the Tribunal, the Tribunal though had admitted that the expenses may not have direct nexus with the business but the maintenance of the gardens have some impact on the image of the company. The relevant observation of the Tribunal is in para 13 of its order and the Tribunal has allowed the claim of the assessee.