1,2 15.00 Legal fees Rs.
9,725.00 Liquidation expenses Rs.
The appeals flied in respect of this assessment year also were unsuccessful.
751.51 Postage Rs.
Ashok Grover for the Appellant.
538.85 A. D.A. Rs.
From the Judgment and Order dated 20.3.
The Liquidator had in the relevant previous year incurred the following expenditure totalling Rs.
1978 of the Allahabad High Court in I .T.R. Nos.
53.75 Total Rs.
12,379.45 The assessee company claimed a deduction of the above said sum of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
12,379.45 from the interest income of Rs.32,237.60.
12,379.45 Salaries Rs.
The Judgment of the Court was delivered by RAMASWAMI, J. The appellant is a private limited companypany in Liquidation.
In respect of both these assessment years the following identical question was directed to be referred by the High Court under section 56 2 of the Act on the refusal of the Tribunal to refer the same under section 256 1 Whether on the facts and in the circumstances of the case, the assessee is entitled to the deduction of the whole or any part of the expenses incurred by the Liquidator in the companyputation of the assessees total income.
95.34 Stationery Rs.
In the assessment year 1967 68 also the assessee earned certain amounts of money by way of interest from fixed deposits and the Liquidator incurred identical expenditures as in the assessment year 1966 67 except for the difference in the amount.
The Income Tax Officer refused to allow any deduction of any part of the expenditure claimed by the assessee.
Even in this assessment year the entire interest income was taxed under section 56 of the Act under the head Income From Other Sources.
1103 1104 of 1979.
Ram Murthy, S. Rajappa and Ms. A. Subhashini for the Respondent.
The winding up order was made by the High Court on 8th November, 1949 land the Liquidator was directed to submit reports every three months respecting the progress of the winding up proceedings and realisation of the assets.
This assessment order was companyfirmed by the Appel late Assistant Commissioner and the Tribunal on an appeal.
The Income Tax Officer did number allow any part of the expenditure claimed by the assessee companypany and assessed the entire amount of Rs.32,237.60 as taxable under section 56 of the Income Tax Act, 1961 hereinafter referred to as the Act , under the head INCOME FROM OTHER SOURCES.
428/72 and 542 of 1973.
During the previous year relevant to the assessment year 1966 67 the appellant earned by way of interest from fixed deposits a sum of Rs.32,237.60.
In the companyrse of winding up the Liquidator sold certain assets and deposited the money in fixed deposits with certain banks.
