Expenditure incurred on food and beverages at the guest houses maintained by the assessee; the case of the Revenue is that there is no evidence to show that the impugned expenditure was incurred on the employees in connection with their stay during official visits whereas assessee company submits that the impugned expenditure was incurred for the purpose of business, since company’s employees stayed in the inspection/guest house near factories while carrying out their official duties and during such period food and beverages were provided to them and such expenditure is allowable as deduction under Explanation 2 to Section 37 (2) of the Act.
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES “E” : MUMBAI
BEFORE SHRI D. MANMOHAN, HON’BLE VICE PRESIDENT AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER
ITA. No. 3002/Mum/2009 – Assessment year- 1986- 1987
ITA. No. 3003/Mum/2009 – Assessment year- 1987- 1988
ITA. No. 3034/Mum/2009 – Assessment year- 1989- 1990
ACIT 2 (3) Mumbai. | Vs. | M/s. TATA Motors Ltd. (Formerly known as TELCO Ltd.) Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai-001 PAN AAACT-2727-Q |
(Appellant) | (Respondent) |
For Assessee : Shri Dinesh Vyas