1973 (1) TMI 16

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.... compliance with the directions issued by this court under section 66(2) of the Indian Income-tax Act, 1922, referred the following question of law for our consideration : "Whether, on the facts and in the circumstances of the case, the assessee is entitled to the deduction of Rs. 26,000 under section 10(1) or section 10(2)(xv) or section 12 of the Indian Income-tax Act, 1922 ? " The petitio....

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....revailing market price, and a subsidy by the Government was under contemplation. Sri Jugal Kishore and Sri Purshottam Das requested the Government to release the stock of sugar, and thereafter sold the sugar at the market price. As a result of the sale, the company did not get the Government subsidy which was expected to be of the tune of Rs. 1,04,000. Sri Jugal Kishore and Sri Purshottam Das on b....

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....) or section 10(2)(xv) of the Act. The mere fact that other directors might have become entitled to a higher dividend, in case the assessee had waited for the subsidy, and the amount was paid by way of compensation to the other set of directors will not convert the amounts shelled out by the assessee into a business expenditure claimable either under section 10(1) or section 10(2)(xv) of the Act. ....