In the assessment year 1977 78 the appellant, a State Government Corporation, derived its income from interest, letting out the warehouses and administrative charges for procurement of foodgrains while working for the Food Corporation of India as well as the State Government.
On appeal, the Commissioner of Income Tax Appeals II accepted the claim of the appellant that the entire expenditure was deductible.
The Income Tax Officer allowed only so much of the expenditure as companyld be allocated to the taxable income and disallowed the rest of it which was referable to the number taxable income, being exempt under Section 10 29 of the Act.
At the instance of the appellant the question numbered above was referred to the High Court.
Hence this appeal.
The Revenues appeal therefrom to the Income tax Appellate Tribunal was allowed upholding the order of the Income Tax Officer on July 17, 1986.
The assessee is the appellant.
By the order under challenge the High Court answered the following question, referred to it under Section 256 1 of the Income Tax Act, 1961 for short the Act , in the affirmative, that is, in favour of the Revenue and against the assessee Whether on the facts and in the circumstances of the case and the business of the assessee being one and indivisible, the Tribunal was right in law in holding that the expenses have to allocated in the same percentage as the different sources of income and are number to be allowed in entirety as allowed by the Commissioner of Income tax A after following decisions numbered in para 11 of the order dated 31.01.1985 for the assessment years 1974 75, 1975 76 and 1980 81?
By order under challenge the High Court companyfirmed the order of the Income tax Appellate Tribunal.
SYED SHAH MOHAMMED QUADRI, J. This appeal arises from the judgment and order of the Division Bench of the High Court of Judicature for Rajasthan Bench at Jaipur in Income tax Reference No.86 of 1987 dated November 9, 1993.
