1971 (5) TMI 21

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..... 922, 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 Transport Authority and also in writ petitions before the High Court filed by the assessee against the granting of road permits to other private carriers was an admissible revenue expenditure?" The reference rela .....

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..... r the assessment year 1958-59 and Rs. 25,000 for the assessment year 1959-60. The Income-tax Appellate Tribunal, on appeal by the assessee, found that with the exception of Rs. 8,042 for the assessment year 1958-59 and Rs. 6,000 for the assessment year 1959-60, the balance of the expenditure should have been treated as revenue expenditure and should, therefore, have been allowed. This reference ha .....

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..... ion describes as one of the objects of the assessee. "To watch over, to promote and to protect the interests of persons owning any motor vehicle or vehicles plying for hire in Kumaon Division." The assessee divides its activities into two distinct departments. One is called the "management section" and is concerned with the task of running the business. The other, described as the "union section .....

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..... s plying for hire in Kumaon Division and, in terms of clause 8(d) of the assessee's memorandum of association, the assessee watched over, promoted and protected their interests. In taking part in the litigation, therefore, it was performing one of the functions for which it has come into existence. There is no question here of bringing into existence any asset or advantage for the enduring benefit .....

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..... he "union section". In our opinion, 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. The question referred is answered in the affirmative. The assessee is entitled to its costs which we assess at Rs. 200. Couns .....

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