The department preferred an appeal to the Tribunal which held that the amount in question was neither expenditure, incidental to the business number was it wholly and exclusively laid out for that purpose number was it claimable as a bad debt in view of the fact that it had number been incurred as a trade debt in the companyrse of the business.
Jagadish Swarup, Solicitor General,, Ram Panjavani and R. N. Sachthey, for the respondent.
Appeal by special leave from the judgment and order dated April 27, 1966 of the Calcutta High Court in Income tax Reference No.
C. Chagla, S. R. Banerjee, N. N. Goswami and S. N. Mukherjee, for the appellants.
The Judgment of the Court was delivered by Grover, J. This is an appeal by special leave from a judgment of the Calcutta High Court answering the following question referred to it under S. 66 1 of the Indian Income tax Act, 1922, hereinafter called the Act in the negative and against the assessee Whether, on the facts and in the circumstances of the case, the sum of Rs.
The assessee wrote to the Montreal Company asking for reimbursement of the said amount.
90 of 1962.
1,24,199/ was deductible from the business income of the assessee either under Section 10 1 or 10 2 xi or 10 2 xv of the Incometax Act ?
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1,24,199/ .
Its principal business companysists of manufacturing aluminium ingots, sheets and such other products from aluminium.
24 of 1967.
The assessee is a public limited companypany having its registered office at Calcutta.
1,24,199/ during the relevant previous year ending on December 31, 1954.
There is another companypany known by the name of Aluminium Laboratories Limited, Montreal, in Canada, hereinafter called the Montreal Company, which provided the, assessee with technical know how, engineering services etc.
The assessee, appealed to the Appellate Assistant Commissioner who allowed its claim.
The assessee wrote off the amount of Rs.
The Montreal Company, however, refused to accept the assessees claim for re imbursement by means of a letter dated August 3, 1954.
