ASSOCIATED BOMBAY CINEMA PRIVATE LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference made to this court under section 66(2) of the Indian Income -tax Act, 1922, the following two questions have been referred to us for our opinion :

(2.) THE question which principally arises pertains to the item of Rs. 75,000 which has been incurred as an expenditure of the assessee -company in prosecuting certain winding -up petitions which had been preferred by several creditors of the lessee -company, viz., M/s. Western India Theatres Ltd. The Tribunal has recorded a finding that the assessee has not shown how it was necessary for it to take up winding -up proceedings or to finance proceedings taken out by third parties for winding up the lessee -company. In view of this finding which has been recorded question No. 2 will have to be answered in the affirmative and against the assessee. We answer accordingly.

(3.) THERE will be no order as to costs.