ITAT Nagpur rules in favor of assessee, grants costs, and allows expenditure incurred during relevant period.

The Appellate Tribunal ITAT Nagpur ruled in favor of the assessee, affirming questions (2) and (3) but answering question (1) negatively. They held that the Income-tax Officer should have allowed for "expenditure incurred" during the relevant period. The Tribunal awarded costs of Rs. 25 to the assessee, to be paid from the Rs. 100 deposit.

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The Appellate Tribunal ITAT Nagpur answered questions (2) and (3) affirmatively without contest. However, they answered question (1) negatively, stating that the Income-tax Officer should have allowed for "expenditure incurred" during the relevant period. The Tribunal awarded the assessee costs of Rs. 25 and ordered payment from the Rs. 100 deposit.

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