1971 (5) TMI 21

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....6(1) of the Indian Income-tax Act, 1922, the question referred is: "Whether, on the facts and in the circumstances of the case, the expenditure incurred over fees paid to lawyers for representing the case before the State Transport Authority and also in writ petitions before the High Court filed by the assessee against the granting of road permits to other private carriers was an admissible rev....

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....ner disallowed Rs. 5,000 as a deduction for the assessment year 1958-59 and Rs. 25,000 for the assessment year 1959-60. The Income-tax Appellate Tribunal, on appeal by the assessee, found that with the exception of Rs. 8,042 for the assessment year 1958-59 and Rs. 6,000 for the assessment year 1959-60, the balance of the expenditure should have been treated as revenue expenditure and should, there....

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....at clause 3(d) of the memorandum of association describes as one of the objects of the assessee. "To watch over, to promote and to protect the interests of persons owning any motor vehicle or vehicles plying for hire in Kumaon Division." The assessee divides its activities into two distinct departments. One is called the "management section" and is concerned with the task of running the busi....

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....ted. Its members were persons owning motor vehicles plying for hire in Kumaon Division and, in terms of clause 8(d) of the assessee's memorandum of association, the assessee watched over, promoted and protected their interests. In taking part in the litigation, therefore, it was performing one of the functions for which it has come into existence. There is no question here of bringing into existen....