2007 (11) TMI 374

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....following questions have been proposed for the admission of this appeal : "(A) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) deleting the disallowance of Rs. 24,22,063 paid to Green Environment Co-operative Society on account of contribution for common effluent treatment plant ? (B) Whether the Appellate....

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....scussion in paragraph 15 of its order, which reads as under (page 294) : "We take up the matter of examination of Rs. 3,70,000, first. The obligation of the assessee, as an industrial unit, under the law, being only to treat the effluent to the required degree prior to its discharge in the public drainage, the contribution made by it, on the direction of the hon'ble Gujarat High Court, to contr....

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....s stand-point, are irrelevant to the purpose of the nature and scope of the obligation under the law. Rather, if at all, these consideration(s) only go to support its (assessee's) argument of the said contribution being made only to protect its business as an ongoing entity, and thus, its business interest/profitability, with no concomitant financial benefit/interest, so that the expenditure is on....

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....ly on account of the assessee agreeing, for various business reasons, to participate in a scheme framed by the hon'ble High Court, as a remedy to a perpetual public hazard, i.e., a social cause, the same would form a part and parcel of the envisage project, and thus, the entire expenditure incurred for the purpose of the conveyance of its discharge would be deductible." 4. We find that the fact....