1971 (2) TMI 28

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....een referred for our opinion : "1. Whether, on the facts and in the circumstances of the case, the assessee's profits and gains earned in the calendar year 1957 were assessable to tax for the assessment year 1958-59 at the rates prescribed by the Finance Act, 1958, or in accordance with clause 23 of the agreement dated April 1, 1938, entered into between the assessee and the erstwhile Jind Stat....

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....ioner of Income-tax and Jeewanlal (1929) Ltd. v. Commissioner of Income-tax . Before we deal with these decisions, it will be proper to mention the brief facts and the contention advanced. For the year 1958-59, the income-tax authorities refused to allow a deduction of Rs. 4,981 and Rs. 3,950 paid as commission to Bhriguraj Charity Trust and M/s. Dalmia Jain Charity Trust, respectively. The con....

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....he Patna High Court reported as Maharajadhiraj Sir Kameshwar Singh v. Commissioner of Income-tax. We may also add that the decision of the Calcutta High Court in Mannalal Ratanlal v. Commissioner of Income-tax takes the same view. Reverting to the two Supreme Court decisions, particular emphasis is laid in India Cements' case on the passage in the judgment of Subba Rao J. (as he then was) in Co....

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....ad been incurred by the assessee to carry on its business from the financial corporation. The loan was held to have been incurred incidentally for carrying on the business. So far as the present case is concerned, none of the requirements of the passage, referred to above, are satisfied. There is no evidence that the business of the assessee was threatened with stoppage or was otherwise to suffer ....