COMMISSIONER OF INCOME-TAX, WEST BENGAL vs NAWN ESTATES (PRIVATE) — 1971 PTD 55

Citation: 1971 PTD 55

Court: Calcutta High Court

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER OF INCOME-TAX, WEST BENGAL vs NAWN ESTATES (PRIVATE) JUDGMENT

Headnotes

Case cited as 1971 PTD 55

Judgment Text

Court Name: Calcutta High Court Judge(s): K. L. Roy, P. B. Mukharji Title:COMMISSIONER OF INCOME-TAX, WEST BENGAL vs NAWN ESTATES (PRIVATE) JUDGMENT Reported As: 1971 PTD 55 Result: rule absolute Judgment JUDGMENT P. B. MUKHARJI, J.-This reference under section 66(2) of the Income-tax Act raises the following question for answer by this Court:- "Whether, on the facts and in the circumstances of the case, the sum of Rs. 17,000 was allowable as deduction under section 12(2) of the Indian Income-tax Act, 1922 ?" The facts giving rise to the above question are briefly as follows :- The assessee is a private limited company owning immovable properties, some leasehold and some shares. The statement of case relates to the assessment year 1958-59, and the corresponding previous year is the financial year ended on the 31st March 1958. For the assessment year 1958-59, in addition to income as guarantee commission for standing as a guarantor to the Central Bank of India Ltd. In respect of the loans advanced by that bank to Messrs Bengal Fine Spinning and Weaving Mills Ltd., an associate concern of the assessee-company. The guarantee commission was included in the total income of the assessee-company for the assessment year 1958-59, by the a result of disclosure by a building called "Mercantile which belonged to the assessee. Now, in respect of that building the assessee paid municipal taxes aggregating to Rs. 64,863, out of which Rs.35,291 was allowed in determining the income under…

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