The High Court has placed reliance on the observations of this Court in India Cements Ltd. v. Commissioner of Income Tax, Madras, 60 ITR 52, and it did number agree with the view taken by the Madras High Court Commissioner of Income Tax, Tamil Nadu I v. Kisenchand Chellaram India P. Ltd., 130 ITR 385.
The said deduction was disallowed by the Income Tax Officer on the view that the expenditure incurred by the assessee was on the capital account.
The question relates to the assessment year 1969 70 and the relevant account year ended on June 30,1968.
The said view of the Income Tax Officer was affirmed by the Appellate Assistant Commissioner and the Tribunal.
