1971 (3) TMI 15

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.... has referred the following question under section 66(1) of the Indian Income-tax Act, 1922 : " Whether, on the facts and in the circumstances of the case, the sum of Rs. 15,300 spent on the construction of kachcha roads and one temporary culvert was revenue expenditure admissible under section 10(2)(xv) of the Act? " The assessee, who is the respondent before us, is a private limited compan....

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....ax the present reference has been made. It is urged on behalf of the Commissioner of Income-tax that the Tribunal has not given any finding that the expenditure was verifiable and, in the absence of such a finding, it erred in law in allowing the appeal of the assessee. That is not the question referred to us by the Tribunal, and, in any event, it can easily be inferred from the manner in which....

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.... justification for disallowing the deduction claimed. It is not possible to infer any conclusion other than that the Tribunal came to the positive opinion that the expenditure was verifiable. The next question is whether the expenditure is of a capital or of a revenue nature. It was urged before the Tribunal on behalf of the assessee that during the season sugarcane was purchased at various cen....

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....ontention, held that there was substantial force in it. From this, we must infer that the Tribunal accepted the facts stated on behalf of the assessee and in that view of the matter there can hardly be any dispute that the expenditure incurred on the construction of the kachcha roads and the temporary culvert must be held to be of a revenue nature. It is not a case where the assessee by the expend....