INDIAN MOLASSES CO PRIVATE LIMITED Vs. COMMISSIONER OF INCOMETAX WEST BENGAL

JUDGEMENT

(1.) THE following Judgment of the court was delivered by

(2.) THE Indian Molasses Co. (Private) Ltd., Calcutta (hereinafter called the assesses Company), have brought this appeal, with the special leave of this court granted on 9/11/1956, against the judgment of the High court of Calcutta dated De 21/12/1955, in Income- tax Reference, No. 15 of 1954. THE question of law referred to the High court was: ` Whether on the facts and in the circumstances of the case, and on a true construction of the Trust Deed, dated 16/09/1948, and the Policy dated the 13/01/1949, the payments made by the assessee Company and referred to in paragraph 4 above constitute 'expenditure' within the meaning of that word in section 10(2)(xv)of the Indian Income-tax Act, 1922, in respect of which a claim for deduction can be made,subject to the other conditions mentioned in that clause being satisfied `. THE question was answered in the negative.

(3.) WE must express our regret that the case took the course it did. The order of assessment was passed as far back as 1952, and seven years have now passed during which only one question out of three is before the courts for decision. Section 10(2)(xv) was analysed by the learned chief justice in these words: ` It will be noticed that three ingredients of the clause lie on the surface of its language. In order that a deduction may be claimed under its provisions it must be proved first that there was an expenditure, secondly, that the expenditure was not in the nature of a capital expenditure I am leaving aside the personal expenses-and, thirdly, that it was laid out or expended wholly and exclusively for the purposes of the assessee's business-I am leaving out profession or vocation. `