S.S.Sandhawalia, J.

1. The precise amplitude of the phrase "in the nature of entertainment expenditure" designedly employed by the Legislature in Sub-sections (2) and (2A)of Section 37 of the I.T. Act, 1961, is the somewhat ticklish question which has necessitated this reference to the Full Bench in view of a conflict of precedent both within and without this court.

2. The issue aforesaid arises from matters mundane. The respondent-assessee, M/s. Khem Chand Bahadur Chand, is a registered firm consisting of four partners and carries on the business of ahrat with its head office at Abohar and branches at Delhi, Sirsa, Dhaban Kokrian, Khuben and Tappa Khera, which places are scattered in the States of Punjab, Haryana and the Union territory of Delhi. For the relevant assessment year 1970-71, the ITO computed the total income of the assessee at Rs. 61,173 against the returned income of Rs. 41,030, The assessee had claimed deductions under the head of "Kitchen expenses " both in the head office and in the Sirsa and Khuben branches accounts. The ITO, however, applied the alternative limit of Rs. 5,000 laid down in item (i) Section 37(2A) of the I.T. Act, 1961 (hereinafter called