1989 (3) TMI 40

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....erred the following questions of law to this court under section 256(1) of the Income-tax Act, 1961 : " 1. Whether, on the facts and in the circumstances of the case, the sums of Rs. 46,208 (RA No. 550), Rs. 2,36,794 (RA No. 552), Rs. 2,95,680 (RA No. 554), Rs. 3,61,890 (RA No. 556), Rs. 3,13,722 (RA No. 557), Rs. 6,50,193 (RA No. 559) and Rs. 5,61,571 (RA No. 562) paid by the assessee-company ....

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....ative, whether the said capital gain in each of the said years was chargeable as short-term capital gain and not as long-term capital gain ? 4. Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 2,314 incurred by the assessee-company by way of payment of brokerage in respect of the aforesaid sale of loom hours was not admissible as a revenue expenditure in the ac....

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.... did not constitute right but merely a contractual restriction on the right of every mill to work its looms to their full capacity, and purchase of loom hours by a mill had the effect of relaxing the restriction. The expenditure incurred by the appellant for purchase of loom hours was for the purpose of operating its looms and was revenue in nature and was allowable as a deduction under section 10....