TMI Blog1971 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - - - - - Dated:- 13-5-1971 - Judge(s) : H. N. SETH., R. S. PATHAK. JUDGMENT The judgment of the court was delivered by PATHAK J.- In this reference, under section 66(1) of the Indian Income-tax Act, 1922, the question referred is: "Whether, on the facts and in the circumstances of the case, the expenditure incurred over fees paid to lawyers for representing the case before the State Trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of the memorandum and articles of association set out in the appellate order of the Tribunal that the assessee is a union of motor lorry owners and its business is to ply the motor vehicles owned by its members and earn a commission for itself. From the total proceeds earned from plying the motor vehicles an amount representing the commission of the assessee is first set apart and the balance is pooled in a separate fund. The operating expenses incurred in plying the motor vehicles is then deducted and the balance remaining is divided among the members according to the number and the kind of motor vehicles held by them. It may be observed further that clause 3(d) of the memorandum of association describes as one of the objects of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g into existence any asset or advantage for the enduring benefit of its members or for its own benefit. It was already carrying on the business and nothing was added to that business. An attempt has been made on behalf of the revenue to contend that the expenditure was incurred for the purpose of preserving a monopoly, but there is nothing on the record to show that any monopoly had been vested in the assessee as regards the plying of motor vehicles on these routes. It is also urged on behalf of the revenue that the litigation benefited the "union section" and not the "management department" of the assessee and that, therefore, the expenditure must be considered as of a capital nature. The finding of fact rendered by the Tribunal in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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