1977 (11) TMI 62

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.... section 256(2) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, West Bengal-II, Calcutta, the question for determination is as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax Officer was not justified in apportioning the total expenditure incurred by the assessee as between the several ....

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....ssioner. The Appellate Assistant Commissioner also apportioned such expenses, though in a different proportion, between the different heads of income. On further appeals by the assessee the Tribunal found that as the assessee's business consisted of dealing in shares and as its entire stock of shares and securities were shown as stock-in-trade, the entire expenses incurred by the assessee relat....

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....revenue has pointed out the relevant sections of the relevant Act which, in our opinion, covers the question in its entirety. Section 14 of the Income-tax Act, 1961, provides as follows : " Heads of income.--Save as otherwise provided by this Act, all income shall, for the purposes of charge of income-tax and computation of total income, be classified under the following heads of income : ....

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....as follows : " Deductions.--The income chargeable under the head 'Income from other sources' shall be computed after making the following deductions, namely :-- (i) in the case of dividends, any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend on behalf of the assessee ; ...... (iii) any other expenditure (....