COMMISSIONER OF INCOME TAX Vs. S L M MANEKLAL INDUSTRIES LIMITED

JUDGEMENT

(1.) THE assessee in both these cases is the same and the assessment years are different, viz., in IT Ref. No. 125 of 1974, the assessment year is 1965-66, whereas in IT Ref. No. 181 of 1974, the assessment year under reference is 1966-67. THE common question which is involved in both these cases is also the same. But in each of these two references one additional question besides the common question has also been referred to us for our opinion. Since the common question which arises in both these matters is the question of major importance, we will dispose of both these matters by this common judgment.

(2.) IN IT Ref. No. 125 of 1974, at the instance of the Revenue, the following question has been referred to us for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the one-fifth of the expenditure incurred by the assessee for purchase of drawings, designs and patterns from the foreign concern under the agreements for manufacture of certain machinery was allowable as revenue expenditure ?"

(3.) IN this case, at the instance of the assessee, the following second question has been referred by the Tribunal to us for our opinion :