1987 (3) TMI 87

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....estions are referred in this reference at the instance of the assessee under section 256(1) of the Income-tax Act. Counsel are agreed that the answer to the first question is governed by the decision of this court in the assessee's own case in Life Insurance Corporation of India v. CIT [1979] 119 ITR 900, and that the expenditure is deductible. Counsel are agreed that the answers to be given....

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.... amount payable under section 16 of the Life Insurance Corporation Act, 1956, in accordance with the principles contained in the First Schedule to the said Act was not an expenditure deductible under section (sic) of the Indian Incometax Act, 1922, sections 30 to 43 of the Income-tax Act, 1961?" The assessee took over the business of certain insurance companies. There was a dispute as to the qu....

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....idered by the assessee as due to them, they were laying any claim to any specific asset of the assessee. The Tribunal concluded that the litigations related to the amount of compensation due for the acquisition or taking over of capital asset. It, therefore, disallowed the deduction claimed by the assessee. The assessee, when it acquired the business of the insurance companies, was acquiring a ....