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Section 37(1) of the Income-tax Act, 1961 [Corresponding to section 10(2)(xv) of the Indian Income Tax Act, 1922] - Business expenditure - Allowability of - Assessment year 1956-57 - Whether expenses incurred for salary of a pujari for invoking blessings of Gods and Goddesses for prosperity has no relationship to carrying on of business by assessee, and hence, is not an admissible deduction - Held, yes FACTS For the assessment year 1956-57, the ITO disallowed the expenses incurred over the salary paid to the pujari for invoking the blessings of God and Goddesses for the assessee' benefit, as not being deductible expenditure. On second appeal, the Tribunal allowed the deduction on the ground that although such expenses might not be tangibly connected with the carrying on of the business, it had certainly an intangible bearing on it since to a God-fearing man such expenses created a sense of security and prosperity and added to the assessee's capability to do better business. On reference : HELD The expenses incurred for the salary of a pujari for invoking the blessings of Gods and Goddesses for prosperity had not relationship to the carrying on of the business by the assessee. It was neither possible nor desirable to delve in the sphere of supernaturalism. For some it is superstition only, while for the other, it is an essential part of life since the destinies of men are controlled by these forces. May be there are forces in heaven of which men know not. Be that as it may, it was difficult to hold that the expenses in question were incurred for the carrying on of the business of the assessee and that he incurred the same as businessmen. Hence the, expenses in question were not an admissible deduction. The case was decided in favour of revenue. CASES REFERRED TO CIT v. Malayalam Plantations Ltd. [1964] 53 ITR 140 ; [1965] 3 SCR 307, CIT v. Walchand & Co. (P.) Ltd. [1967] 65 ITR 381 ; [1967] 3 SCR 314, Indian Steel & Wire Products Ltd. v. CIT [1968] 69 ITR 379 (Cal.) and Sree Meenakshi Mills Ltd. v. CIT [1967] 63 ITR 207 ; [1967] 1 SCR 392. JUDGMENT Misra, J.-M/s. Bhanna Mal & Co. (P.) Ltd., Delhi, the assessee, during the assessment year 1956-57 for…

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