The assessee incurred the expenditure made towards Navodaya Grama Vikasa Charitable Trust with a description ”animator salary” under the directions of their controlling authority, i. e., NABARD. The Assessing Officer disallowed the expenditure. On extensive analysis of the factual aspects, the Tribunal arrived at a conclusion that though the assessee was promoting the formation of self-help groups in the districts of Dakshina Kannada and Udupi, and the loans were given to such self-help groups for home industries like candle-making, soap-making and such other activities, the income generated by such self-help groups came back to the assessee as deposits. The commercial exigency being established under the provisions of section 37(1) of the Act, the expenditure was allowed as deduction. On appeal to the High Court  affirmed the order of Tribunal. Referred   Sasoon J. David and Co. P. Ltd. v. CIT (1979) 118 ITR 261 (SC). (AY.2012-13)