1970 (4) TMI 6

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..... gment of the Calcutta High Court refusing to require the Income-tax Appellate Tribunal to state the case and to refer to it certain questions of law which it was claimed arose from the order of the Tribunal, dated March 13, 1964, relating to the assessment year 1954-55. The respondent-company was engaged during the previous year ending on December 31, 1953, relevant to the assessment year 1954-5 .....

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..... l to the High Court a compromise was entered into. The respondent-company was a party to the appeal as also to the compromise. According to the compromise the lease was to be renewed with retrospective effect from April 1, 1943. The respondent-company had to pay the rent from April 1, 1943, to March 31, 1953. This amount came to Rs. 42,473 which was paid during the previous year in question as ren .....

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..... ew that after the expiry of the lease on April 1, 1943, and the refusal to the lessor to renew the same the respondent was in the position of a trespasser particularly after the dismissal of the suit for specific performance by the trial court. Until the suit was compromised in the High Court in 1953 it could not be said that the respondent's liability had become ascertained. In other words, it wa .....

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..... e High Court was justified in refusing to direct the Appellate Tribunal to state the case and refer the question which was sought to be referred. It was perfectly clear that the amount which had been paid by the respondent was an expenditure which was wholly and exclusively incurred for the purpose of carrying on its business. If the compromise had not take place and its terms not satisfied by pay .....

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..... ly found that it was only as a result of the compromise that the respondent became entitled to remain in possession of the demised land. Its liability also became ascertained only at that point of time. It cannot be disputed that the respondent in incurring the expenditure had acted in the interest of and for the purpose of its business. The expenditure was not laid out for any purpose other than .....

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