Dismissing the appeal of the revenue, the Court held that it was not the case of the Department that the accounts prepared by the assessee were not in accordance with Parts II and III of Schedule VI to the Companies Act, 1956. Once it was found that the assessee had incurred the expenditure and the accounts were in accordance with Parts II and III of Schedule VI to the 1956 Act, and in the absence of any allegation that the profit and loss account did not adhere to Parts II and III of Schedule VI to the 1956 Act, the assessee’s claim with regard to expenditure could not be rejected as rightly held by the Commissioner (Appeals) and the Tribunal..(AY. 1999-2000, 2000-01)