SADUL TEXTILES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) MR. Rajendra Mehta, learned counsel for the assessee, has submitted an application on December 2, 1985, praying therein that the question involved in this reference is similar to the question which was answered by this Court in Devichand Bastimal vs. CIT (1985) 156 ITR 166 (Raj) and so the question may be answered in terms of Devichand Bastimal's case.

(2.) MR. B. R. Arora, learned counsel for the Revenue, has not opposed the application. Paper books in this reference have already been submitted by learned counsel for the assessee.

(3.) IT will be clear that the Division Bench in Devichand Bastimal's case (1985) 156 ITR 166 (Raj) has relied on CIT vs. Patel Brothers & Co. Ltd. (1977) 106 ITR 424 (Guj), wherein the following four tests were laid down for determining the nature of entertainment expenditure (headnote of 156 ITR) :