Business deduction for electricity line contribution allowed under income tax law, with prior authority supporting the assessee.

A contribution made to the Gujarat Electricity Board for laying an additional circuit line was treated as an allowable business deduction, the question having been covered by earlier authority in the assessee's favour. The court held that the amount was deductible under the Income-tax Act rather than being disallowed as a non-business outlay, and the Tribunal was not justified in rejecting the claim.

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Issues: Whether the assessee was entitled to deduction of the contribution made to the Gujarat Electricity Board for laying an additional circuit line under section 37 or section 28 of the Income-tax Act, 1961.

Analysis: The question was treated as covered by earlier authority in the assessee's favour, and the contribution was held to be allowable as a business deduction.

Conclusion: The question was answered in the negative, in favour of the assessee, and the Tribunal was held not justified in disallowing the deduction of Rs. 4,28,555.

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