T. Stanes and Co. Ltd. vs Commissioner of Income Tax

Civil Appeals Nos. 581-186 of 1976 : The following question was referred to the High Court by the income tax Appellate Tribunal u/s 66(1) of the Indian income tax Act, 1922 (see Commissioner of Income Tax Vs. T. Stanes and Co. Ltd., ) :

Whether, on the facts and in the circumstances of the case, the assessee would be entitled to claim as deductions the sums of Rs. 13,789, Rs. 16,587, Rs. 31,454, Rs. 44,622, Rs. 12,907 and Rs. 15,570 respectively, for the assessment years 1959-60 to 1964-65, or any part thereof u/s 10(2)(xv) or under the corresponding provisions of Section 87 of the income tax Act of 1961 ?

Keeping in view of the peculiar facts and circumstances of this case, the High Court answered the question partly in favour of the Revenue in the following terms (see p. 261) :

We, accordingly, hold that (1) in respect of the assessment years 1959-60 and 1960-61, the sums of Rs. 13,789 and Rs. 16,587 are not allowable deductions u/s 10(2)(xv) of the Act, and (2) except to the extent of Rs. 1,004, Rs. 5,070, Rs. 2,352 and Rs. 6,716 referable to the excess of amounts paid over and above the income of the fund and which was charged to the profit and loss account in the assessment years 1961-62, 1962-63, 1963-64 and 1964-65, respectively, the balance of the amount in these assessment years are not allowable deductions.

We have heard learned Counsel for the parties. We have been taken through the reasoning of the High Court on the basis of which the above-quoted answer was rendered. We see no infirmity in the same. There is, thus, no ground to interfere with the High Court judgment. The appeals are dismissed with no order as to costs.

Civil Appeals Nos. 3903-07 of 1983, 3897-3901 of 1983 :

In view of our order in Civil appeals Nos. 581-586 of 1976, these appeals are dismissed with no order as to costs.