KUMBAKONAM ELECTRIC SUPPLY CORPORATION LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question of law, which is common in all the cases, that arises for decision in this batch of applications under section 66 of the Indian Income-tax Act is :

(2.) WE shall now state the facts in each case and set out the question referred :T.C. No. 91/1961. - The assessee is a public limited company carrying on business of purchase and sale of electrical energy. It was assessed to wealth-tax under the WEalth-tax Act on March 31, 1959, and the tax of Rs. 9,594 was levied. This sum was claimed as a deduction by the assessee from its business income in respect of the assessment year 1959-60. The claim was negatived by the department as well as by the Tribunal. The question that is referred is :

(3.) T.C. No. 111/1961. - The assessee is a private limited company dealing in automobiles. The company paid tax of Rs. 19,867 under the Wealth-tax Act in respect of the assessment year 1959-60 and claimed this as proper deduction in the computation of its business profits for the same year. The claim was not allowed by the department or by the Tribunal. The assessee also claimed extra depreciation allowance of Rs. 1,08,988 for the assessment year 1959-60, and this was also disallowed. The two questions that stand referred are :