TMI Blog1993 (9) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... al has referred the following questions under section 256(1) of the Income-tax Act, 1961 ("the Act", for short), for our opinion: "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has been right in law in holding that the claim of reimbursement of amount of advances was an allowable deduction ? 2. Whether, on the facts and in the circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... la). That practice was discontinued and the assessee-company had persuaded the dealers to purchase coolers for chilling the drinks. The dealers expressed their difficulties in investing Rs. 3,000 to Rs. 6,000 each and desired that the assessee should devise some arrangement by which the purpose could be served. The assessee, in turn, worked out the arrangement with the bank as stated above. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed. Before the Tribunal, it was contended on behalf of the Department that it was not the assessee's business to deal in such electric coolers and it was the responsibility of the retailers to have coolers and, therefore, it cannot be said that the loss was in the course of the assessee's business. Alternatively, it was contended that the expenditure was of a capital nature. Both these cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as there was no intention on the part of the assessee to acquire any asset of enduring nature. The amount was required to be paid in the course of the business, which can be described as revenue expenditure. Further, it is to be noted that the Department has not challenged the finding given by the Commissioner of Income-tax (Appeals) that it is common knowledge that the soft drinks do not taste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e affirmative. Regarding question No. 2, it depends only on investigation of facts. Therefore, in our view, the Tribunal rightly sent back the matter to the Income-tax Officer to determine that part of the expenditure which was incurred by the assessee in the accounting year under consideration and allow it for that year. Hence, question No. 2 also requires to be answered in the affirmative. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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