The Income tax Officer rejected the claim, and the Appellate Assistant Commissioner upheld that decision.
This clause regarding appointment companytained in paragraph 7 formed part and integral part of the agreement and was a companysidera tion for the receipt of the benefit from Charles Walker under the agreement.
At the instance of the assessee, the Tribunal made a reference on the aforesaid question to the High Court.
310 of 1968 C. Manchanda, M.N. Tandon and Miss A. Subhashini for the Appellant.
The assessee went up in appeal before the Income tax Appellate Tribunal.
The assessees claim was made on the basis that the assessee was bound under an agreement with Messrs Charles Walker Co., London to pay that amount to Textile General Supplies for meeting the initial expenditure for establishing it as distributor of the assessees products.
From the Judgment and Order dated 25.11.
For the as sessment year 1959 60, under the Income tax Act, the rele vant accounting of which being the calender year ending on 31st December, 1958, the assessee had claimed a deduction of Rs.50,000 paid to Messrs Textile General Supplies Private Ltd. Bombay hereinafter referred to as Textile General Supplies .
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1971 of the Allahabad High Court in Income Tax Reference No.
The activity of tanning hides and manufacturing leather products was carried on under the name and style of Cooper Allen and North West Tannery branches.
1163 NT of 1974.
The assessee carried on the business of manufacture and sale of woolen goods, companyton textiles and hides and leather products.
The Judgment of the Court was delivered by SABYASACHI MUKHARJI, J. This is an appeal from the judgment and order of the High Court of Allahabad dated 25th November, 1971.
P. Singh and Ranjit Kumar for the Respondent.
The Income Tax Appellate Tribunal had referred to the High Court the following question for its opinion Whether, on the facts and in the circumstances of the case, the expenditure of Rs.50,000 was a capital expenditure which companyld number be allowed as a deduction under section 10 2 xv of the Income tax Act, 1922?
