HOTEL RAJMAHAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore Bench, has referred, under s. 256(1) of the I.T. Act, 1961, the following question of law for the opinion of this court :

(2.) THE facts behind the legal formulation are as follows :

(3.) THE counsel, in support of his contention, relied upon the decision is the Supreme Court in India Cements Ltd. v. CIT [1966] 60 ITR 52. We do not think that he could draw support from that decision since it was a case where a certain sum of money was spent towards stamp duty, registration fees, lawyer's fees, etc., for the purpose of the existing business of the assessee. Similar was the distinguishing feature in the following two decisions of the Bombay High Court relied upon by the learned counsel :