Sandvik Asia Ltd vs. CIT (Bombay High Court)
The key word in Explanation is “work”. There could be a scenario where in the given set of facts and circumstances it could be validly contended that a hotel was a place of the work of the employees of the Assessee Company
Whether expenses incurred in a hotel would fall within “or other place of their work” appearing in Explanation 2 to Section 37(2A) of the Act, would entirely depend on the facts of each case. There cannot be any generalization in this regard. The key word in Explanation is “work”. There could be a scenario where in the given set of facts and circumstances it could be validly contended that a hotel was a place of the work of the employees of the Assessee Company, but the same has to be examined on a case to case basis. In the present case, the factual findings given by the authorities below and as can be discerned from paragraph Nos.12 to 14 of the Tribunal’s Order, are against the Applicant/Assessee. Nothing has been brought to our notice to controvert those findings or to show that they are perverse or vitiated by any error of law apparent on the face of the record. It can hardly be argued that by the employees accompanying their customers for lunches and dinner, they were engaged in work and would therefore fall within “other place of their work” as contemplated in the said Explanation. In view of these factual findings of the authorities below, which are uncontroverted before us, we answer Question Nos.14 to 19 in favour of the Revenue and against the Assessee.
Article referred: http://itatonline.org/archives/sandvik-asia-ltd-vs-cit-bombay-high-court/
The key word in Explanation is “work”. There could be a scenario where in the given set of facts and circumstances it could be validly contended that a hotel was a place of the work of the employees of the Assessee Company
Whether expenses incurred in a hotel would fall within “or other place of their work” appearing in Explanation 2 to Section 37(2A) of the Act, would entirely depend on the facts of each case. There cannot be any generalization in this regard. The key word in Explanation is “work”. There could be a scenario where in the given set of facts and circumstances it could be validly contended that a hotel was a place of the work of the employees of the Assessee Company, but the same has to be examined on a case to case basis. In the present case, the factual findings given by the authorities below and as can be discerned from paragraph Nos.12 to 14 of the Tribunal’s Order, are against the Applicant/Assessee. Nothing has been brought to our notice to controvert those findings or to show that they are perverse or vitiated by any error of law apparent on the face of the record. It can hardly be argued that by the employees accompanying their customers for lunches and dinner, they were engaged in work and would therefore fall within “other place of their work” as contemplated in the said Explanation. In view of these factual findings of the authorities below, which are uncontroverted before us, we answer Question Nos.14 to 19 in favour of the Revenue and against the Assessee.
Article referred: http://itatonline.org/archives/sandvik-asia-ltd-vs-cit-bombay-high-court/
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