ERODE TRANSPORTS (PVT.) LTD. vs COMMISSIONER OF INCOME-TAX, MADRAS — 1971 PTD 533

Citation: 1971 PTD 533

Court: Madras High Court

Year: 1971

Decision Date: 1971-04-04

Parties: ERODE TRANSPORTS (PVT.) LTD. vs COMMISSIONER OF INCOME-TAX, MADRAS

Headnotes

Case cited as 1971 PTD 533

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title: ERODE TRANSPORTS (PVT.) LTD. vs COMMISSIONER OF INCOME-TAX, MADRAS Case No.: Case No. 262 of 1964 Date of Judgment:1971-04-04 Reported As: 1971 PTD 533 Result: N/A JUDGMENT JUDGMENT VEERASWAMI, J.-In respect of the assessm ent year 1959-60, the assessee claimed a deduction of Rs. 2,615 as legal expenses. This amount included a sum of Rs. 1,250 paid to an advocate in connection with the opening of three new bus routes. The Income-tax Officer disallowed the claim in toto. The appellate authority declined to interfere but found, that the correct figure was a sum of Rs. 1,250. The Tribunal also concurred with the revenue. In the circumstances, the reference comes before us under section 66(1y of the Indian Income-tax Act, 1922, and the question is: "Whether, on the facts and circumstances of the case, the sum of Rs. 1,250 ii not an admissible deduction in the computation of the assessee's business income under sec--petition 10(2)(xv) of the Indian Income-tax Act for the assessment year 1959-60 ?" It is stated that the sum of Rs. 1,250 was fees paid to a lawyer, who appeared in proceedings under the Motor Vehicles Act, to obtain the three new route permits. The assessee is a fleet owner, as we are told, and carries on transport business. It is argued that the expenditure incurred by payment of the lawyer's fee in getting the three route permits is expenditure of a revenue character and is entitled to…

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