TMI Blog1991 (5) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the Income-tax Officer to examine the details of expenditure claimed by the assessee and deal with their allowability from the view point of the necessity of the assessee-company to retain its status as a company under the Companies Act, 1956, and the expenditure directl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat expenses attributable to such income were admissible under section 57(iii) of the Income-tax Act, 1961. He estimated the admissible expenses which were wholly and exclusively expended for the purpose of earning such taxable income at Rs. 1,000 only. In the appeal before the Commissioner of Income-tax (Appeals), the assessee contended that though no business activity in the form of coal minin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany could not be taken up except with the consent of the Central Government and that the assessee company was retaining its status as a company under the Companies Act, 1956. The Tribunal set aside the order of the Commissioner of Income-tax (Appeals) and the order of the Income-tax Officer and restored the matter to the Income-tax Officer. It had directed the Income-tax Officer to look into th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred for earning the income which was assessed under the head "Other sources". In our view, so long as a company is not formally struck off the Register of Companies, a company continues to have certain statutory obligations. The company has to file various statements and returns. For that purpose and also for the purpose of retaining its status as a company, it has to incur certain expenditure. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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