1994 (10) TMI 22

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....come on the principal amount collected and is an allowable deduction ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in equating nexus with the principal amount collected with the interest earned on the principal amount and in allowing the expenditure in view of the nexus (if at all) with the principal amount in deposit ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and in fact in holding that the legal process, salaries and allowances to the staff, establishment charges for the purpose of pursuing the legal process are highly necessary expenses for earning the interest on the principal collection by the assessee ? " The assessee-company is no....

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....ed that the following question of law arises out of the order of the Tribunal, and that it is liable to be referred, namely: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing deduction of the various items of expenditure from the income of the assessee for purposes of assessment. " We are of the view that this question, as to whether the items of expenditure incurred by the assessee, and in respect of which he claims deduction, are deductible or not could have been decided by us with reference to the aforesaid decision of the Supreme Court and others, if we had power to do so. Essentially this is a question of law on which a decision could be rendered even now without the aid of any ....

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....tion of law formulated by it. This court could have dealt with this matter with all expedition and rendered a final decision if the matter is dealt with in a direct revision on questions of law, instead of a reference. If a revision is allowed as the remedy in such matters, the aggrieved party could approach this court with a petition to deal with the order of the Tribunal on any question of law that may arise out of it, and it will be open to this court to render a final decision on the point with all expedition. In fact, such a procedure will also have the added advantage of weeding out frivolous matters at the very threshold by a process of preliminary hearing. All this, we are precluded from doing because of the peculiar and, what we ma....