1993 (9) TMI 32

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.....--By this reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the assessee, the Income-tax Appellate Tribunal has referred the following three questions of law to this court for its opinion: "(i) Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the expenses amounting to Rs. 12,507, Rs. 85,777 and Rs. 10,077 incurred ....

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....antee commission amounting to Rs. 3,000 for the assessment year 1977-78 ?" The first question is covered by the decision of this court dated April 23, 1993, in the case of Voltas Ltd. v. CIT [1994] 207 ITR 47 (Income-tax Reference No. 259 of 1980). Following the same, it is answered in the affirmative, i.e., in favour of the Revenue and against the assessee. The third question is also covere....

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....Dwarkadas, learned counsel for the assessee, submits that all the authorities below including the Tribunal erred in law in holding that by incurring the above expenditure the assessee derived an enduring benefit. The payment of the amount in question, according to learned counsel, was made not to the Bombay Municipal Corporation from whom the land had been obtained but to the occupier of the said ....

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....n the instant case, the expenditure in question was incurred by the assessee for getting vacant possession of the plot of land which it had acquired in exchange for its own plot from the Bombay Municipal Corporation. The admitted position is that the plot in question was in the occupation of some third person who had been running a laundry business thereon. The above amount was paid to the occupie....