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1996 (2) TMI 374 - SC - Income TaxWhether the Tribunal was right in law in holding that the professional charges paid by the assessee-company to its Solicitors for effecting the amalgamation of Nawrosjee Wadia Ginning & Pressing Company with it, was of revenue nature and should be allowed as a deduction in the computation of its total income ? Whether the Tribunal was justified in law in holding that the 'assessee-company' was entitled to a deduction for a sum of ₹ 2,25,000 in respect of the contribution made by it to the Maharashtra Housing Board towards the construction of tenements for its workers ? Held that:- Appeal dismissed. The expenditure incurred towards professional charges of the Solicitors' firm for the services rendered in connection with the said amalgamation was in the course of carrying on of the assessee's business and, therefore, deductible as a revenue expenditure. The amount was advanced to the Government which purchased the land in its own name and the buildings constructed thereon became property of the Government - and not of the assessee. The High Court was justified in rejecting the application under section 256(2).
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