Present Appellant, and , Respondent

When the income of a business is assessed for purposes of taxation, section 12 (ab) of the Income Tax Ordinance, as amended by Act No. 13 of 1959, does not debar the proprietor of the business from claiming, as deductible expenses, monies spent by his employees on entertainment in connection with the business.

stated under section 74 of the Income Tax Ordinance.

S. Nadesan, Q. C., with Desmond Fernando, for the assessee-appellant.

A. C. Alles, Solicitor-General, with H. L. de Silva, Crown Counsel, for the respondent.

Cur. adv. vult.

October 12, 1962.
This is a case stated under section 74 of the Income Tax Ordinance (Cap. 242, as amended by Act No. 13 of 1959), in which the opinion of this Court is sought on the question whether the proprietor of a business could claim, as deductible expenses, monies spent by his employees on entertainment in connection with his business in assessing the income of the business for purposes of taxation.

The facts, set out in the case stated, are as follows : The assessee, who is carrying on a partnership business with two oth