1970 (3) TMI 28

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....ian Income-tax Act, 1922. The assessee is a public limited company. The assessment year relevant to this reference is 1956-57, the corresponding accounting year being the year ended on 30th June, 1955. During the accounting year the assessee-company incurred expenditure of Rs. 1,18,401 in connection with the issue of debentures. The loan secured by the debentures was Rs. 50,00,000. The loan was ob....

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....iation and development rebate under section 10(2)(vi) and (vib) respectively. The Tribunal has rejected both these claims. The following two questions of law have been refereed: 1. Whether, on the facts and in the circumstances of the case, the amount of Rs. 1,28,401 was an admissible deduction in arriving at the assessable business profits of the company ? and 2. If the answer to the fir....

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....xclusively for the purpose of the assessee's business and was, therefore, allowable as a deduction under section 10(2)(xv). It was held that the act of borrowing money was incidental to the carrying on of business, the loan obtained was not an asset or an advantage of enduring nature, the expenditure was made for securing the use of money for a certain period and it was irrelevant to consider the ....