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TMI Blog1972 (1) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ther, on the facts and in the circumstances of the case, the expenses totalling Rs. 6,312 are an admissible charge against the income of the previous year?" The Modi Supplies Corporation Ltd. and the Modi Food Products Ltd. were amalgamated in 1956, with the Modi Sugar Mills Ltd., the assessee before us. Several payments made in respect of legal proceedings taken on behalf of the former two compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer rejected the claim and his decision was maintained by the Appellate Assistant Commissioner. The Tribunal, following the decision of this court in J. K. Cotton Manufacturers Ltd. v. Commissioner of Income-tax, also held that the expenditure incurred was not an admissible deduction. We have heard learned counsel for the parties, and in our opinion the claim of the assessee should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stly incurred. . . .. It must be remembered that the earning of profits and the payment of taxes are not isolated and independent activities of a business. These activities are continuous and take place from year to year during the whole period for which the business continues. If the assessee takes any steps for reducing its liability to tax which result in more funds being left for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relates to income alleged to have been concealed is not relevant at all. In the case mentioned above, the Supreme Court specifically had in mind cases where income had escaped assessment and cases which attracted penalties. Moreover, no material from the record has been placed before us indicating that the proceedings in respect of which the expenditure was incurred had anything to do with conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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