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TMI Blog1968 (4) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... a deduction of Rs. 2,615 as legal expenses. This amount included a sum of Rs. 1,250 paid to an advocate in connection with the opening of three new bus routes. The Income-tax Officer disallowed the claim in toto. The appellate authority declined to interfere but found that the correct figure was a sum of Rs. 1,250. The Tribunal also concurred with the revenue. In the circumstances, the reference c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accept the contention. A reference to the provisions of the Motor Vehicles Act would make it clear that each route permit is a separate entity, which is granted after elaborate proceedings. Transport business, after all, consists of running of buses and no bus can be run except on permit. When a new permit is obtained, in our opinion, it cannot be said that the expenses incurred therefor are e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. Normally there is a business carried on when registration of a trade mark is made. There can be a trade mark even without registration. Registration of a trade mark is made in order that it may be protected by the relative statutory provisions. It is clear, therefore, that expenses incurred in registering a trade mark can well be said to be expenses laid out wholly for the purpose of the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor Vehicles Act. Section 10(2)(xv) speaks of expenditure laid out for the purpose of a business which the assessee is carrying on. We are unable to see how, even before a permit is obtained, the assessee can be taken to carry on business of running a bus which would be covered by a permit to be obtained. We are not inclined to think that the expenditure in obtaining a new permit can be regarded a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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