Law:

Section:

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Whether purchase of loom hours was a revenue expenditure allowable under section 37(1) - Held, yes Facts For the relevant assessment year, the assessee-company claimed deduction on account of purchase of loom hours, as being: revenue expenditure. The department disallowed the assessee's claim. However, on appeal, the Tribunal allowed the assessee's claim. On reference: Held In view of the Supreme Court's decision in the case of Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1, in the instant case, the Tribunal was justified in holding that the purchase of loom hours was an allowable revenue expenditure. Case referred to Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC). R.D. Misra for the Applicant. JUDGMENT Sengupta, J.-At the instance of the Commissioner, West Bengal, the following questions of law have been referred to this Court under section 256(1) of the Income-tax Act, 1961 ('the Act'): "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reassessment made by the Income-tax Officer was invalid and illegal? 2. Whether, on the facts and in the circumstances of the case, reopening of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492