1985 (12) TMI 11

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..... e under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee to decide the following questions of law : " (1) Whether, on the facts and in the circumstances of the case, the amounts of Rs. 16,905 and Rs. 518 spent on repairs of machinery and bhatta and chimneys, respectively, were allowable as business expenditure ? (2) Whether the amount of Rs. 10,444 for which a provisio .....

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..... ts, the assessee sought a reference which has been made to answer the aforesaid two questions. The facts found proved by the Tribunal and stated in the statement of the case for the purpose of deduction of Rs. 16,905 on account of expenditure incurred on repairs of the machinery are that the assessee had admittedly closed the manufacturing business at its Jabalpur branch in the year 1967 and no m .....

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..... argued that the scope of section 37(1) is much wider and it permits the allowing of " any expenditure laid out or expended wholly and exclusively for the purpose of business or profession " which means that any expenditure for the purpose of any business or profession can be allowed as an expenditure under section 37(1) of the Act. There can be no dispute with this argument, but the same is of no .....

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..... . Accordingly, on the facts found proved by the Tribunal, no case for applying section 37(1) of the Act is made out. The decisions cited by learned counsel for the assessee are distinguishable on facts inasmuch as the business carried on during the relevant previous year in those cases had reasonable nexus with the expenditure incurred which was allowed as a deduction. The aforesaid first question .....

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..... f the Revenue as under: 1. On the facts and in the circumstances of the case, the amounts of Rs. 16,905 and Rs. 518 spent on repairs of machinery, bhatta and chimneys, respectively, were not allowable as business expenditure. 2. The amount of Rs. 10,444, which was a provision made for overtime wages, could not be allowed as a deduction in computing the total income. The Revenue shall get its co .....

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