COMMISSIONER OF INCOME TAX Vs. INDIAN OXYGEN LTD
HIGH COURT OF CALCUTTA
COMMISSIONER OF INCOME-TAX
INDIAN OXYGEN LTD.
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Deb, J. -
(1.)The following question is involved in this reference under Section 256(2) of the Income-tax Act, 1961:
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 2,97,480 paid by the assessee to the British Oxygen Co. Ltd., London, in pursuance of the agreement dated October 1, 1959, was a permissible deduction under Section 37(1) of the Income-tax Act, 1961."
(2.)The assessment year involved is 1962-63 for which the relevant accounting year ended on September 30, 1961.
(3.)The assessee is an Indian company (hereinafter referred to as the "Indian company"). It is engaged in the manufacture and sale of oxygen and other products both in gases and liquid forms, including the manufacture and sale of electrodes, welding rods, welding equipment, medical equipment and accessories. The Indian company was a 100 per cent. subsidiary company of the British Oxygen Co. Ltd., London (hereinafter referred to as "the English company"). During the year under consideration the Indian company ceased to be a 100 per cent. subsidiary company of the English company and the English company held about 51 per cent. of the capital of the Indian company.
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