1987 (3) TMI 38

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.... J.-The following two questions have been, at the instance of the Revenue, referred to us by the Income-tax Appellate Tribunal, Cochin Bench : " 1. Whether the payment of Rs. 75,000 to one Mr. Nair is revenue expenditure deductible in the computation of the business income of the assessee ? 2. Whether, on the facts and in the circumstances of the case, the rubber replantation subsidy is inco....

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....ssee, the Tribunal found that the expenditure was in the nature of an ex gratia payment and was allowable under section 37. The specific finding of the Tribunal nevertheless is: " ...This expenditure is to be considered as only incurred for protecting the property of the assessee. It would, therefore, be revenue expenditure . ... .. " The conclusion is, in our view, not warranted by the find....