1998 (2) TMI 18

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....of Rs. 42,512 incurred as centage charges and other expenses paid to Southern Railways laid out for purposes of business and, accordingly, in allowing the same as a revenue outgoing for the assessment year 1972-73? 2. Whether, on the facts obtaining in this case the Appellate Tribunal was correct in law in holding that the interest received on the deposits with the Electricity Board should not be deducted from the gross total income while determining the relief under Section 80-I? 2. So far as the second question of law is concerned, it is fairly conceded by learned counsel for the Revenue that the issue raised in the question was considered by this court in the case of the very same assessee in the case reported in CIT v. Sesha....

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....nditure in bringing the materials for putting up the second siding. The railway authorities sent a bill to the assessee asking them to pay a sum of Rs. 42,512 and the assessee claimed that the said amount was an expenditure incurred by the company for the purpose of laying a second siding, that is for the purpose of its business and it is entitled to claim the same as deduction against its business income. The Income Tax Officer held that the expenditure claimed by the assessee was neither revenue expenditure nor the same can be claimed as expenditure incurred for the purpose of the business, nor it has been incurred during the relevant previous year for the assessment year 1972-73 and, therefore, he disallowed the same. The assessee took t....

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....ntly quantified the liability and, therefore, the view of the Tribunal that the liability was incurred during the previous year was correct. In support of his submission, learned counsel for the assessee relied upon the decision reported in the case of CIT v. Seshasayee Paper and Board Ltd. [1994] 207 ITR 80 (Mad), and certain passages in the Law of Income Tax by Sampath Iyen-ger. 5. We have carefully considered the submissions of counsel. We have already set out the facts and circumstances of the case in detail which indicate that the assessee after initially requesting" for the construction of the second siding decided to abandon the second siding project during the course of construction of the second siding by the railways. According....