1991 (6) TMI 63

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....oyed without deducting the current liabilities and redetermine the deduction admissible to the assessee under the provisions of section 80J and rule 19A of the Income-tax Rules ? (2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that, except for the amount of Rs. 3,029 the balance of the expenses of Rs. 24,307 were not hit by the provisions of section 37(4) of the Income-tax Act, 1961, and, consequently, were allowable under section 37(1) of the Act ? (3) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in applying the tests laid down in the decision of the Gujarat High Court in the case of Patel Bros. ....

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....the negative and against the assessee. So far as questions Nos. 2, 3 and 5 are concerned, they are covered by the decision of this court in CIT v. Patel Brothers and Co. Ltd. [1977] 106 ITR 424. Following the said decision, we answer questions Nos. 2, 3 and 5 in the affirmative and in favour of the assessee. Questions Nos. 6 and 7 are covered by the decision of this court in the assessee's case for the assessment year 1966-67 which is reported in [1986] 162 ITR 496 (Kaira District Co-operative Milk Producers' Union Ltd. v. CIT). Following the said decision, we answer question No. 6 in the negative and against the assessee. We may, however, make it clear that though the Income-tax Appellate Tribunal was not right in holding that the assessee....