1995 (5) TMI 17

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....K. SHARMA J.-- In this reference, at the instance of the assessee, the Income-tax Appellate Tribunal has referred the following question to this court for its opinion under section 256(1) of the Income-tax Act, 1961 (hereinafter called " the Act ") : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that Rs. 7,684 incurred on account of Commission o....

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....ng to the Commission of Inquiry be borne by these companies. In pursuance of the said request, the board of directors of the company adopted a resolution resolving that all the expenses connected with the Commission of Inquiry shall be borne by the four companies of which the assessee-company was one. During the course of the aforesaid enquiry, the assessee-company incurred a total expenditure of ....

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....a member, it could not be taken as a normal hazard of an honest businessman and that as such the expenditure could not be considered to be the normal expenditure of the business wholly and exclusively laid out for its purpose. Our attention has been drawn to two decisions of this court in South Asia Industries (P.) Ltd. v. CIT [1981] 132 ITR 144 and also in the case of the same assessee, namely....