INDIAN CARD CLOTHING CO LTD Vs. INCOME TAX OFFICER
LAWS(IT)-1982-7-24
INCOME TAX APPELLATE TRIBUNAL
Decided on July 03,1982

Appellant
VERSUS
Respondents

JUDGEMENT

S.N. Rotho, Accountant Member - (1.) THIS appeal has been filed by the assessee against the order dated 6-2-1981 of the Commissioner (Appeals) relating to the assessment year 1977-78, the previous year of which ended 31-3-1977.
(2.) [This para is not reproduced here as it involves a minor issue.] The only other ground in this appeal relates to the disallowance of a sum of Rs. 6,000, The assessee is a limited company. During the year under consideration, it spent a sum of Rs. 39,629 as legal and professional charges paid to seven parties. The ITO allowed a sum of Rs. 33,029 relating to five parties as admissible deduction. He did not allow the remaining two items, namely, Rs. 1,000 paid to the Controller of Capital Issues for approval of the bonus share issue and Rs. 5,600 paid to the auditors for examining the application to the Controller of Capital Issues, in connection with the aforesaid bonus shares. The sum of these two items comes to Rs. 6,600 but the ITO disallowed a sum of Rs. 6,000 only, apparently due to inadvertence. The reason given by the ITO for the disallowance is that the expenses were incurred on capital account.
(3.) ON appeal, the Commissioner (Appeals) confirmed the disallowance on the same ground as given by the ITO.;


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