1986 (6) TMI 27

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....TTY, ACTG.. C. J.-This is a reference under section 256(1) of the Income-tax Act, 1961. The Tribunal has referred the following question : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the expenditure of Rs. 10,000 as marriage expenses is a capital charge on bequeathed properties and can be allowed as a deduction if the sam....

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.... Commissioner allowed deduction to the extent of Rs. 30 per month given to the mother towards her maintenance and disallowed the other claim. The assessee preferred further appeal before the Appellate Tribunal. The Tribunal, while wholly agreeing with the view of the Assistant Commissioner, in regard to the maintenance paid to the mother, has partly allowed an expenditure of Rs. 10,000 incurred in....

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....could be allowed as deduction. Counsel for the assessee has not been able to refer to any other provision in the Income-tax Act. He, however, submitted that in computing the income from a property of the assessee, the amount which was liable to be paid to third parties out of the income thereof should be allowed as deduction as an overriding charge on the property. It is too difficult to accept....

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....ncome is required to be applied to discharge an obligation after such income reaches the assessee the same consequence, in law, does not follow. It is the first kind of payment which can truly be excused and not the second." The Tribunal has misapplied the above observation. There may be obligations and obligations to apply the income derived by the assessee. The assessee might have been oblige....