COMMISSIONER OF INCOME TAX Vs. A JANARDHANA SHETTY

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated November 25, 1994, for the assessment year 1984-85.

(2.) THE facts as stated by the Tribunal are that the assessee had done arrack business in the previous year relevant to the assessment year 1984-85. THE assessee had incurred certain expenditure in helping the excise authorities in organising raids to reduce illicit trade, and claimed the expenditure towards raids in connection with the business for allowing deduction under Section 37. THE Income-tax Officer disallowed the claim of the assessee on the ground that it is the duty of the State Excise staff to unearth illicit brewing, for which they have got their own machinery. He furthermore stated that the assessee could not adduce any evidence as to how exactly the amount claimed had been spent and other details had also not been supplied. On this basis, he disallowed the claim of the assessee in this regard.

(3.) THE argument of both learned counsel for the parties heard.