COMMISSIONER OF INCOME TAX Vs. SIWAKAMI MILLS LIMITED

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) The short question that arises for our consideration in this appeal is whether the guarantee commission paid by the assessee is a revenue expenditure and hence allowable as deduction in computing the total income in the Assessment Year 1968-69. The High court answered the question in favour of the assessee. It was held that the guarantee commission paid by the assessee was a revenue expenditure and hence allowable as a deduction in computing the total income. The Revenue has come in appeal.

(3.) A similar question arose before the A. P. High court in commissioner OF INCOME TAX v. Akkamba Textiles Ltd. The court held that the expenditure incurred is revenue in nature and so allowable as deduction. Civil No. 2832 of 1977 preferred against the said decision was dismissed by this court. In view of the aforesaid decision we see no force in this appeal. Accordingly this appeal is dismissed. There will be no order as to costs.