1988 (7) TMI 40

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....by G. G. SOHANI, ACTG. C.J. -As directed by this court in M.C.C. No. 135 of 1982, the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing the claim of Rs. 38,000 as revenue expenditure ?" The material facts giving rise t....

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....the Income-tax Officer in that behalf was upheld. Aggrieved by that order, the assessee preferred a further appeal to the Tribunal which was allowed. As the application submitted by the Revenue before the Tribunal for making a reference was rejected, the Revenue filed an application under section 256(2) of the Income-tax Act, 1961, to this court which was allowed and the Tribunal was directed to s....

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....ssential to be seen is whether the amount in question was paid for bringing into existence a right or asset of an enduring nature. The finding of the Commissioner of Income-tax (Appeals) that the expenditure represented the cost of the structure and the acquisition of tenancy rights has not been set aside by the Tribunal. By making the payment of Rs. 38,000 to Sardar Darshan Singh, the assessee ac....