TaxTMI 
TaxTMI 
2001 (1) TMI 15
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, the following question has been referred for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (for short, "the Act"), by the Income-tax Appellate Tribunal, Delhi Bench 'B" (in short "the Tribunal"): "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the sum of Rs.1,48,492 is allowable as revenue expenditure?" T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncurred on rented premises not belonging to the assessee and was, therefore, allowable as a revenue expenditure. The Income-tax Officer did not accept this contention relying on the provisions of section 32(1A) introduced in the Act with effect from April 1, 1971. The matter was carried in appeal before the Appellate Assistant Commissioner (in short, "the AAC"). Before the said authority, the asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hould be allowed. The Appellate Assistant Commissioner accepted the stand and directed deletion of disallowance of Rs.85,591. Similar direction was given in respect of other expenses under the different heads enumerated above. The order of the Appellate Assistant Commissioner was challenged before the Tribunal. The stand that in view of section 32(1A) of the Act the expenses were not allowable, wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and that too in relation to and by way of renovation or extension of or improvement to the building. It is stated that the conditions requisite for bringing in application of section 32(1A) are absent and, therefore, the Tribunal was justified in its conclusion. We find that the Tribunal has not addressed itself as to the applicability of section 32(1A) even though that was the main challenge. I....