- (1.) WE have heard the learned Counsel for both sides.
(2.) THE following question has been referred in this case: 1. Whether on the, acts and circumstances of the case the Tribunal is correct in law in holding that the expenditure on hiring of cars does not come within the purview of Section 37(3 -B) for the purposes of 10% disallowances? It appears that under Section 37 business expenditure which is sought deducted from the profits and gains of business or profession has been led under certain cases under Sub -section (3A) and Sub -section (3B) with explanation (c).
(3.) APPARENTLY , these provisions which had been inserted and have now deleted were for the purposes of stopping extravagant expenditure on advertisement, publicity, sales promotion, running and maintenance of Aircraft, running and maintenance of Motor Cars and payments made to Hotels Under Sub -section (3A) of Section 37, if expenditure on the above exceeded Rupees one hundred thousand, the entire excess would not be permitted to be deducted and only up to a maximum of 80% of the excess 9 Rupees one hundred thousand would be allowed to be deducted by the assessee from the profits and gains of business or profession.;