1977 (11) TMI 55

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.... established in this case that an expenditure of Rs. 15,500 was incurred by the assessee for the purposes of acquiring office premises at New Delhi and that in connection with the same transaction, stamp duty of Rs. 750 has been paid. The question was whether these payments were allowable deductions while computing the total income of the assessee in respect of the assessment year 1964-65. The cla....

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....as having been incurred for the purpose of bringing into existence an asset or advantage of an enduring character. It is difficult for us to accept the contention advanced on behalf of the revenue. The period of the lease which is only five years cannot be said to be such a long period that the assessee can be said to have acquired or brought into existence an advantage of an enduring character. ....

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....or a short period of five years were, therefore, clearly in our view, allowable as revenue expenditure. The Tribunal has relied upon a decision of the Supreme Court in India Cements Ltd. v. Commissioner of Income-tax [1960] 60 ITR 52, and the ratio spelt out therein that where there is no express prohibition, an outgoing by means of which an assessee procured the use of a thing by which he made pr....