1966 (9) TMI 44 - SUPREME COURT

Whether, on the facts and in the circumstances of the case, the payment of ₹ 42,480 by the assessee to the Travancore Government under the agreements dated Jane 18, 1937, and January 28, 1947, was allowable under section 10 of the Income-tax Act ?

Held that:- It is not, however, possible for us to finally determine this appeal because the High Court has not dealt with the other questions arising in this reference. Even if the payment of the commission to the Government by the assessee is not capital but revenue payment, certain other questions arise for consideration in this case.

It is necessary that the High Court should consider all these aspects of the case before furnishing an answer to the question of law referred to it. For these reasons we allow this appeal, set aside the judgment of the High Court of Kerala dated August 20, 1963, and remand the case for being reheard and dealt with in accordance with the directions given in this judgment. Appeal allowed by way of remand.