RAM BAHADUR THAKUR LIMITED Vs. COMMISSIONER OF INCOME TAX
LAWS(KER)-2003-1-63
HIGH COURT OF KERALA
Decided on January 31,2003

RAM BAHADUR THAKUR LTD. Appellant
VERSUS
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

- (1.) A recurring question regarding the allow ability of the expenditure incurred on the foreign tour of the wife of a Director of a company in the computation of income under the head "profit and gains of business" under S.37(1) of the Income Tax Act, 1961 (for short 'the Act') arises in this reference.
(2.) A Division Bench consisting of one of us (Sivarajan, J.) & C.N.Ramachandran Nair, J. has referred this case to a larger Bench stating that there is a conflict between the decision in I.T.R. No. 9/98 on the one hand and in Commissioner of Income Tax v. Aspinwall and Co. Ltd. (Ker.) ( 1999 (235) ITR 106 ) and Commissioner of Income Tax v. Appollo Tyres Ltd. ( 1999 (237) ITR 706 ) on the other on this question.
(3.) The Income Tax Appellate Tribunal, Cochin Bench, at the instance of the assessee, has referred the following question of law for the decision of this Court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenditure incurred on the foreign tour of the wife of a Director of the Company is not an allowable deduction under the Income Tax Act, 1961 ;


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