COMMISSIONER OF INCOME TAX Vs. M S SHROFF

JUDGEMENT

(1.) The following common question of law arising out of two orders passed by the Income-tax Appellate Tribunal (Delhi Bench 'C'), has been referred to this Court at the instance of the Commissioner of Income-tax, under Section 256(1) of the income-tax Act, 1961.

(2.) The assessment year in question is 1962-63. The assessee is an Ophthalmic Surgeon in New Delhi. He derives income from his profession as well as from salary received by him from Dr. Shroff's Charity Eye Hospital. During the accounting year ending 31st March, 1962 the assessee visited several hospitals in different countries of Europe and in Egypt. He undertook the tour in order to keep himself abreast with the latest techniques in ophthalmology and spent a total sum of Rs. 10,079.00 on the tour. The amount consisted of Rs. 3,617.00 spent on air-journey ticket and Rs. 161.00 on visa etc., while the balance was spent on his up-keep abroad.

(3.) In the computation of his total income for the assessment year 1962-63 the assessee claimed a deduction of the above sum of Rs. 10,079.00. The Income-tax officer dis-allowed the claim in its entirety on the ground that the knowledge gained by the assessee as a result of his tour abroad was of an enduring benefit to him and as such the expenditure-incurred was of capital nature. He also observed that a part of the expenditure was purely on personal account and had therefore no relation to his income for purposes of assessment.