Business expenditure deduction upheld where factual finding showed the full expense was incurred for business use.

The Tribunal found, on facts, that the entire expenditure of Rs. 31,519 was incurred for business purposes and not for house property, and the High Court saw no reason to disturb that factual finding in reference proceedings. Because the assessee had separately disclosed the house property-related expenditure, the disallowance of Rs. 25,519 was held to be unjustified. The full amount was therefore treated as allowable business deduction.

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Issues: Whether the sum of Rs. 25,519 was a proper deduction from the assessee's total income as business expenditure.

Analysis: The assessment year in question was 1977-78. The Tribunal found that the entire expenditure of Rs. 31,519 was incurred for the assessee's business and not for the house property, and that finding was based on facts. The court held that there was no justification to disturb the factual finding in reference proceedings, especially when the assessee had separately shown the expenditure relating to house property.

Conclusion: The entire expenditure of Rs. 31,519 was allowable as business deduction, and the disallowance of Rs. 25,519 was not justified.

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