The expenditure had been claimed and allowed as business expenditure of the assessee.
During that period the assessee did number, because he companyld number, work the companyliery.
After the companyliery was released by the military, the assessee incurred a further expenditure amounting to Rs.
While the South Samla Colliery remained under military occupation the assessee incurred expenditure on payment of surface rent and minimum royalty in respect of that companyliery and also on account of salary for the watch and ward staff.
2098 of 1972 From the Judgment and Order dated 5 8 1971 of the Calcutta High Court in Income Tax Reference No.
In the assessment proceedings for that assessment year the assessee claimed a deduction of the amount of Rs.
1,61,742 was capital in nature.
1,61,742 under s. 10 2 xv of the Indian Income Tax Act, but the deduction was disallowed by the Income tax Officer on the ground that the expenditure was capital in nature.
On appeal, the Appellate Assistant Commissioner affirmed that the expenditure was in the nature of capital expenditure.
The expenditure of Rs.
1,61,742 in renovating the building, reconditioning the machinery and clearing the land of debris accumulated over a number of years.
The assessee proceeded in second appeal, but the Income Tax Appellate Tribunal, without giving any reasons of its own, merely recorded its agreement with the income tax authorities.
1,61,742 companysisted of Rs.
He companytinued, however, carrying on his business in companyl and working other companylieries during that period.
The High Court numbered the following facts The assessee carried on business in companyl as the owner of various companylieries.
1,61,742 on the companyliery with a view to resuming mining operations.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
During the period of military occupation the assessee incurred expenditure on account of minimum royalty payable in respect of the companyliery, the surface rent and salaries for the watch and ward employees.
The expenditure was allowed in income tax proceedings as a business expenditure.
The expenditure was incurred during the previous year beginning October 24, 1957 and ending November 11, 1958 relevant to the assessment year 1959 60.
After the companyliery was handed over to the assessee upon derequisition, the assessee incurred, during the relevant period, an expenditure of Rs.
109/65.
The assessee obtained a reference to the High Court at Calcutta for its opinion on the following question Whether on the facts and circumstances of the case, the Income tax appellate Tribunal was justified in holding that the expenditure clammed on the South Samla Colliery at Rs.
The respondent assessee is a registered firm and owns several companylieries in West Bengal and Bihar.
V. Patel, J. Ramamurthy and Miss A Subhashini for the Appellant.
One of the companylieries is known as the South Samla Colliery.
The South Samla companyliery was under military occupation from 1942 and was released in 1955.
R. Banerjee, Mrs. Indu Goswamy and Arvind Minocha for the Respondent.
The Judgment of the Court was delivered by PATHAK, J. This appeal by certificate granted by the High Court at Calcutta under s. 66A 2 of the Indian Income tax Act, 1922 is directed against the judgment dated August 5, 1971 of that High Court disposing of an income tax reference.
The South Samla Colliery, which was one of them, was occupied by the military from 1942 until it was derequisitioned in 1955.
