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1971 (5) TMI 21 - HC - Income TaxThe assessee is a limited company carrying on the business of plying motor vehicles on certain routes. In the assessment proceedings for the years 1958-59 and 1959-60 it claimed a deduction of Rs. 11,681 an Rs. 29,712, respectively, on account of fees paid to its lawyers for representing its case before the State Transport Authority and also in certain writ petitions before the High Court. The assessee contended in that litigation that permits should not be granted to other private carriers on the routes assigned to the assessee. The Income-tax Officer and the Appellate Assistant Commissioner disallowed Rs. 5,000 as a deduction for the assessment year 1958-59 and Rs. 25,000 for the assessment year 1959-60. - Held that the expenditure incurred by the assessee over the fees paid to its lawyers for representing its case before the State Transport Authority and in the writ petitions before the High Court must be held to be admissible revenue expenditure.
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