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2003 (9) TMI 29 - HC - Income TaxAmount paid on account of overriding title to the wife of vendor - "(i) Whether, Tribunal was right in holding that a sum of Rs. 9,812 is not admissible deduction for the purpose of computing the total income of the assessee? Clause 4 of the sale deed specifically mentions that the amount in question is charged on the net profits of the assessee-company and the assessee-company had accepted this obligation as a condition of its purchase of the going concern. Hence, it is not a case of mere application of income but it is a case of diversion of income by an overriding charge. Hence the amount paid has to be deduced from the income of the assessee - The x-ray machine is definitely involved in the processing of goods as the x-ray plates are blank, and films are created on exposure which are converted into images only after due processing, thus assessee is an 'industrial company' under section 2(7) of the Finance Act, 1979
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