JUDGMENT

J.S.VERMA, J. :—These appeals and the connected matters involve for decision the common question of law relating to the meaning of "entertainment expenditure" in Section 37(2A) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") during the relevant assessment years. The decision of the Gujarat High Court in Commr. of Income-tax Gujarat v. Patel Brothers & Co. Ltd., (1977) 106 ITR 424, on this point is challenged by the revenue in these appeals by a certificate granted under Section 261 of the Act. The connected matters involve the same point. All cases relate to the period prior to 1-4-1976 from which date only explanation 2 inserted in sub-section (2A) of Section 37 by the Finance Act, 1983 was applied retrospectively, even though sub-section (2A) was inserted w.e.f. 1-10-1967 by Taxation Laws (Amendment) Act, 1967.

2. The material facts in these appeals illustrative of all connected matters, are these : The relevant assessment years are 1969-70, 1970-71 and 1971-72 of which the corresponding previous years ended on September 30, 1968, September 30,1969 and September 30,1970 respectively. The assessee, a limited company, claimed kitchen expenses of Rs. 22,30