1994 (3) TMI 52

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....ARAF J.-By this reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following questions of law to this court for opinion : "1. Whether, on the facts and in the circumstances of the case, the repairs and reconstruction cess levied by the Bombay Municipal Corporation is a permissible deduction under th....

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....ssee ? 5. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount of gratuity exempt under section 10(10) should be excluded and the excess of gratuity alone should be taken for the purposes of the disallowance under section 40A(5) ?" The controversy in the first question relates to the allowance of deduction in the computation of inc....

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....ion No. 2 is concerned, on a perusal of the facts and circumstances of the case and the findings of the Tribunal, we find that the Tribunal was correct in holding that the expenditure of Rs. 32,845 incurred by the assessee on the foreign travel of its employees was a deductible expenditure in computing its business income. This question is also, therefore, answered in the affirmative and in favour....

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.... in respect of the import duty was a revenue expenditure admissible as a deduction. The Tribunal was, therefore, justified in allowing deduction in respect of the same. Question No. 4 is accordingly answered in the affirmative and in favour of the assessee. Question No. 5 is covered by the ratio of a latest decision of this court dated December 17, 1993, in Income-tax Reference No. 212 of 1982 ....