1. The Revenue has filed these five Appeals under Section 260A of the Income Tax Act, 1961 (‘Act’ for short) against the Respondent Assessee M/s. CHAMUNDI WINERY AND DISTILLERY, BANGALORE (hereinafter referred to as “CHAMUNDI” for short) for A.Y.2008-09 to 2012-13 raising the Substantial Questions of law, which we have reframed.

2. The Tribunal as well as the first Appellate Authority, Commissioner of Income Tax (Appeals) decided in favour of the Respondent Assessee that the “Distributable Surplus” paid by the Respondent Assessee CHAMUNDI to DIAGEO INDIA PRIVATE LIMITED (hereinafter referred to as ‘DIAGEO’ for short), a subsidiary and Group Company of DIAGEO Plc, a United Kingdom based Liquor Conglomerate, was an ‘allowable expenditure’ in the hands of the Respondent Assessee under Section 37 of the Act.

3. The following Substantial Questions of law do arise in the present set of appeals which we have reframed as below:

[i] Whether the Tribunal was justified in holding that the Distributable Surplus paid by the Respondent Assessee M/s. CHAMUNDI WINERY AND DISTILLERY to DIAGEO