- (1.) This appeal is directed against the judgment and order of the learned Tribunal dated 13th August, 2003 in relation to the assessment year 1997-98.
(2.) The instant appeal was admitted by order 8th December, 2003 on the following substantial questions of law: (i) "Whether the Tribunal was justified in law in restricting the allowability of deduction on account of the expenditure of Rs. 5,44,050/-actually incurred by the appellant wholly and exclusively for the purposes of its business and/or for the purpose of earning the income to 50% of such expenditure and its purported findings in this behalf are arbitrary unreasonable and perverse ? (ii) Whether the Tribunal was justified in law in rejecting the appellant's miscellaneous application for rectification of the error apparent in the order dated November 28, 2002 and its purported findings in that behalf are arbitrary, unreasonable and perverse ?"
(3.) The assessee-appellant filed return in relation to the aforesaid assessment year and claimed deduction on account of business expenditure of Rs. 5,44,050/-. The Assessing Officer did allow the deduction and after computing the income, the Assessing Officer came to the fact-finding that the taxable income was Rs. 6,88,260/-. The tax amount was computed on the basis of the same.;