TMI Blog1969 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ed deduction for this amount of Rs. 25,000. Secondly, the assessee received from the Government a sum of Rs. 40,419 for early start of crushing of sugarcane in accordance with a Government press note dated October 12, 1956. The assessee contended that this sum did not represent the assessee's income. On both the points the Income-tax Officer found against the assessee. As regards the first item, it was held that the sum of Rs. 25,000 represented capital expenditure. On the second point, it was held that the receipt of Rs. 40,419 represented the assessee's income. Assessment was made accordingly. This view was upheld in appeal by the Appellate Assistant Commissioner and by the Appellate Tribunal. At the instance of the assessee, the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oad. It was held that the money was spent not so much to bring about any asset or advantage of enduring benefit to itself but to run the business efficiently and conveniently. It was, therefore, held that this expenditure should be allowed under section 10(2)(xv) of the Indian Income-tax Act, 1922. In Commissioner of Income-tax v. S. B. Ranjit Singh, the assessee had leased a hotel with furnishings and fittings for 20 years. An expense of Rs. 24,904 was incurred in resurfacing with concrete the approach roads which had fallen into a bad state. It was held that the expenditure was an allowable deduction. The expense was incurred in respect of current repairs. A somewhat similar case came before us in Dewan Sugar and General Mills (P.) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the ensuing session, the Central Government have decided in consultation with the U. P. Government, to allow such factories which start crushing by 4th November, 1956, a concession of four annas per maund on cane crushed up to the 12th November, 1956. " In Senairam Doongarmall v. Commissioner of Income-tax, the assessee owned a tea estate. The factory and other buildings of the estate were requisitioned for defence purposes by the military authorities. Manufacture of tea was stopped completely. The assessee was paid compensation for the years 1944-45 under the Defence of India Rules. The question arose whether the amounts of compensation were revenue receipts taxable in the hands of the assessee. It was held that the compensation paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 40,419 received by the assessee does not represent compensation for injury of a permanent character. It appears that the Government paid this sum to the assessee as inducement for early crushing of sugarcane. Sub-section (3) of section 4 of the Act enumerates a number of exemptions. Clause (vii) of sub-section (3) of section 4 of the Act is : " Any receipts ..... not being receipts arising from business or the exercise of a profession, vocation or occupation, which are of a casual and non-recurring nature, or are not by way of addition to the remuneration of an employee. " A somewhat similar case came before this court in Ratna Sugar Mills Co. Ltd v. Commissioner of Income-tax. On the basis of recommendations of the Labour Wage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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