Gopal Sri Ram JCA:

[1] The appellant is a private limited company. It blends and sells lubricants for motorised vehicles. It also sells some equipment and other products. During the years of revenue assessment 1989, 1990, 1991 and 1992 the appellant gave away certain promotional items to its customers and dealers. There were two categories of promotional items. First, those given to dealers ("the dealers' items") who marketed the appellant's products to members of the public. These did not carry the appellant's logo on them. They were such items as electrical appliances and beverages. Nothing turns on the dealers' items as the appellant taxpayer does not challenge the decision by Revenue in respect of these. Second, those given away to customers ("the customers' items") who purchased the appellant's products. These included such items as mugs, "T" shirts and umbrellas which carried the appellant's logo. So, if you went along to a petrol kiosk and bought one of the appellant's products, say, a can of "Castrol" engine oil, for your motor car, you would receive one of the customers' items. The appellant deducted the expenses incurred on all these promotional items from its gros