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Commissioner of Income-tax Karnataka-i Vs. Mysore Paper Mills Ltd. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtKarnataka High Court
Decided On
Case NumberCivil Petition No. 124 of 1976
Judge
Reported in[1980]126ITR437(KAR); [1980]126ITR437(Karn)
ActsIncome Tax Act, 1961 - Sections 37(2A) and 256(2)
AppellantCommissioner of Income-tax Karnataka-i
RespondentMysore Paper Mills Ltd.
Excerpt:
.....victim and his income. the award made under the said provision shall be in full and final settlement of the claim. the note appended to column 1 from the total amount of compensation, 1/3rd thereof, has to be reduced in consideration of the expenses, which the victim would have incurred, towards maintaining himself had he been alive. further, section 163-a read with schedule ii of the act, itself having provided the percentage of deduction to be effected, the deduction can be in terms thereof only and not otherwise. award is justified. .....accordingly, this petition is dismissed......
Judgment:

Govinda Bhat, C.J.

1. This is an application under s. 256(2) of the I.T. Act, 1961, made by the Commissioner of Income-tax, Karnataka-I, Bangalore, to direct the Tribunal to state a case and refer the question whether the Tribunal was right in law in holding that the expenditure of Rs. 6,588 incurred by the assesses company on catering and refreshments, etc., for its shareholders and guests at the general body meeting, did not constitute expenditure in the nature of entertainment and, therefore, the restrictions laid down under s. 37(2A) of the Act is not applicable to the said expenditure.

2. The Tribunal has come to the conclusion that expenditure incurred at the general body meeting cannot be regarded as entertainment expenditure. Entertainment presupposes a third party being entertainment by the assessee; one does not entertain himself. There cannot be any two views on this question and we do not consider that there is any referable question of law. Accordingly, this petition is dismissed.


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