1992 (9) TMI 77

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..... the Income-tax Appellate Tribunal has referred the following question of law for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that an amount of Rs. 16,750 was allowable as, revenue expenditure ? " After hearing learned counsel for both the parties, we found that the question referred to us is required to be reframed so a .....

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..... terms and conditions subject to which the loan was given are reproduced herein : "Every year, the Sangh has to provide 25 per cent. out of gross profit towards loan charges to the Government. " Clause (7) of the said terms and conditions provides as under: " Rs. 3,35,008 be repayable in five equal annual instalments. The guarantee amounts at 1/2 per cent. shall be remitted to the Government tre .....

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..... loan from the Government at a subsidised rate of interest and as per the terms and conditions of the loan, provision of Rs. 9,750 and Rs. 7,000 was made in the two accounts, and there was, thus, overriding title to the income of the assessee to the above extent, i.e., to an extent of Rs. 16,750. Being aggrieved by the order of the Appellate Assistant Commissioner, the matter was carried further i .....

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..... Government. The said amount, in fact, did not belong to the assessee and by way of overriding title which was created in favour of the Government under the terms and conditions of loan, the amount was required to be passed over to the Government. This position clearly emerges from the terms and conditions of the agreement of loan, and in our opinion, if the said terms and conditions are properly .....

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..... t reached by the Appellate Assistant Commissioner, and confirmed by the Tribunal, in our opinion, in fact, no question of law arises which requires an answer from this court. The question which we have refrained as stated hereinabove is, accordingly, required to be answered in the affirmative, i.e., in favour of the assessee and against the Revenue. No costs.
Case laws, Decisions, Judgements, .....

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