COMMISSIONER OF INCOME-TAX, DELHI vs BHANNA MAL & CO. (P.) LTD. , — 1976 PTD 369

Citation: 1976 PTD 369

Court: Delhi High Court

Year: 1971

Decision Date: 1971-02-04

Parties: COMMISSIONER OF INCOME-TAX, DELHI vs BHANNA MAL & CO. (P.) LTD. ,

Headnotes

Case cited as 1976 PTD 369

Judgment Text

Court Name: Delhi High Court Judge(s): H. R. Khanna, Vyas Dev Misra Title: COMMISSIONER OF INCOME-TAX, DELHI vs BHANNA MAL & CO. (P.) LTD. , Case No.: Income-tax Reference No, 42 of 1966 Date of Judgment:1971-02-04 Reported As: 1976 PTD 369 Result: Question answered in the negative JUDGMENT JUDGMENT ' MISRA, J.-Messrs Bhanna Mal & Co. (P.) Ltd., Delhi, the asessee, during the assessment year, 1956- 57 for which the accounting year ended on October 25, 1955, spent a sum of Rs, 130 in its Patna branch and Rs, 65 in its Alwar branch over the salary of a pujari, who used to invoke the blessings of gods and goddesses of prosperity for the benefit of the assessee. The Income-tax Officer disallowed both these items as not being a deductible expense without assigning any reason. The assessee appealed. The Appellate Assistant Commissioner confirmed the disallowance obseving that the assessee had failed to prove as to how these expenses were necessary for the purpose of running the business. ' On second appeal, the Income-tax Appellate Tribunal held that, although such expenses might not be tangibly connected with the carrying on of the business, it had certainly an intangible bearing on it, since to a god-fearing man such expenses were expenses which create a sense of security and prosperity and add to the assessee's general capability to do better business. Accordingly, the assessee's claim to deduct the said items as admissible expenses was allowed. ' On an application made by…

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