1998 TAX. L. R. 184 ::(1998) 147 CurTaxRep 256 ::(1998) 232 ITR 618 ::1998 UPTC 1 48 ::(1998) 98 Taxman 388 ::(1998) 147 Taxation 673

Allahabad High Court

Hon'ble Judge(s): Om Prakash, R. K. Gulati , JJ

(A) Entertainment expenditure - Deduction under S. 37 (2) - Claim for entertainment expenditure should be worked out by taking over all income of assessee company and not unitwise. Income-tax Act (43 of 1961) , S.37— In Tax Laws a deduction cannot be permitted on the analogy of another deduction, but deduction can be allowed only when it is provided under the Act explicitly. It is by virtue of S. 24 that deduction from income of each house property can be claimed in view of Cls. (i) to (x) of sub-sec. (1) of S. 24. No analogous provision is there to claim deduction in respect of entertainment expenditure in the case of an assessee company. Therefore, it cannot be said that as the deduction for each house property is allowable under the Act, same way claim for entertainment expenditure should have been worked out by the assessing officer unitwise and not in respect of the over-all income of the assessee-company. (Para 9 10) (B) New Industrial Undertaking - Deduction under S. 80J - Computation - R. 19A (3) of Rules providing for exclusion of borrowed monies and debts - Claim of assessee-company should be worked out taking into consideration R. 19A (3) of Rules.1985 Tax LR 353 (SC), Approved. Income-tax Act (43 of 1961) , S.80J— In....