Law:

Section:

Section 37(1), read with section 256 of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessee's Cinema at Lucknow had been closed down - Tribunal held that two Cinema halls run by assessee at Delhi and Lucknow constituted one unit and, therefore, business expenses relating to Lucknow Cinema hall could not be disallowed - Whether question as to whether two cinemas were controlled and run as a single unit or not was a pure question of fact, and therefore, no referable question of law arose from Tribunal's order - Held, yes FACTS The assessee's cinema at Lucknow had been closed down. The Commissioner (Appeals) as well as the Tribunal, on the evidence on record, came to the conclusion that the two cinema halls at Delhi and Lucknow constituted one unit and, therefore, the business expenses relating to Lucknow could not be disallowed. On petition : HELD Whether the two cinemas were controlled and run as a single unit or not was a pure question of fact and, therefore, no question of law arose from the Tribunal's order. The petition was to be, accordingly, dismissed. Note : In favour of the assessee. CASE REFERRED TO L. M. Chhabda & sons v. CIT [1967] 55 ITR 638 (SC). B. Gupta and R.K. Chaufla for the Applicant. JUDGMENT B.N. Kirpal, J.-This petition is in respect of the assessment year 1982-83, and the petitioner seeks reference of the following question to this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee-company was entitled to the deduction of expenses incurred by it in respect of the cinema business at Lucknow which had been closed down?" The contention of the petitioner is that the assessee's cinema at Lucknow had been closed down and, thereafter, seeking to apply the ratio of the decision of the Supreme…

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