Business expenditure deduction upheld where contribution was made to advance commission income and supported by factual findings.

Unilateral relief under the income-tax provisions was treated as governed by an earlier Bombay HC ruling on the same point, and the assessee's claim was accepted accordingly. A separate contribution made to managed mills for golden jubilee celebrations was held deductible because it was made to advance the assessee's business interests and earn greater commission. The Tribunal's finding that the expenditure was laid out wholly and exclusively for business purposes was treated as a supported finding of fact, and the recipient mills' use of the funds did not change the expenditure's character from the assessee's perspective.

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Issues: (i) Whether the assessee was entitled to unilateral relief under section 49D of the Income-tax Act, 1922 for the relevant assessment years. (ii) Whether the assessee was entitled to deduction under section 10(2)(xv) of the Income-tax Act, 1922 in respect of the contribution of Rs. 1,00,000 made to the managed mills on the occasion of their golden jubilee celebrations.

Issue (i): Whether the assessee was entitled to unilateral relief under section 49D of the Income-tax Act, 1922 for the relevant assessment years.

Analysis: The question was governed by an earlier decision of the same court on the identical issue, and the parties accepted that the matter stood concluded by that ruling.

Conclusion: The assessee was entitled to relief under section 49D and the question was answered in the affirmative.

Issue (ii): Whether the assessee was entitled to deduction under section 10(2)(xv) of the Income-tax Act, 1922 in respect of the contribution of Rs. 1,00,000 made to the managed mills on the occasion of their golden jubilee celebrations.

Analysis: The contribution was found to have been made with the object of advancing the assessee's business interests and earning more commission. The Tribunal's finding that the expenditure was laid out wholly and exclusively for the purposes of the assessee's business was supported by evidence and was a question of fact. The use made of the amount by the managed mills did not alter the character of the expenditure from the assessee's point of view.

Conclusion: The assessee was entitled to the deduction and the question was answered in the affirmative.

Final Conclusion: The reference was decided in favour of the assessee on the substantive questions answered, while the remaining question was not answered as it did not survive.

Ratio Decidendi: Expenditure is deductible under section 10(2)(xv) when it is laid out wholly and exclusively for the purposes of the assessee's business, and a Tribunal's factual finding to that effect, if supported by evidence, is not open to interference.

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