MYSODET PRIVATE LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference made under section 256 of INcome-tax Act, 1961 (hereinafter referred to as "the Act"), the INcome-tax Appellate Tribunal, Bangalore Bench, Bangalore ("Tribunal"), at the instance of the assessee, has referred the following question of law for the opinion of this court :

(2.) IN order to appreciate the question referred to us, it is necessary to notice the facts as found by the Tribunal.

(3.) SRI K. SRInivasan, learned senior standing counsel for the Income-tax Department, appearing for the Revenue, contends that the Tribunal had correctly applied the legal principles and recorded a correct finding on the nature of the expenditure incurred by the assessee. In support of his contention, SRI SRInivasan relies on a Division Bench ruling of the High Court of Bombay in ACC-Vickers Babcock Ltd. v. CIT [1976] 103 ITR 321 and a Full Bench ruling of the Kerala High Court in CIT v. Veeriah Reddiar [1977] 106 ITR 610.