COMMISSIONER OF INCOME TAX Vs. COMMONWEALTH TRUST LIMITED

JUDGEMENT

(1.) This reference by the Income Tax Appellate Tribunal, Cochin Bench, raises the following questions of law for our determination and opinion

(2.) On appeal by the assessee, the Appellate Assistant Commissioner agreed with the Income Tax Officer that in the absence of registers, the assessee was not entitled to claim deduction in respect of the amount of Rs. 38,219 for maintenance of the guest house. Regarding the second head of claim, namely, the expenditure incurred for valuation of the properties, the Appellate Assistant Commissioner was not satisfied that the expenditure was incurred wholly and exclusively for the purpose of the business. In the result, he confirmed the order of the Income Tax Officer and dismissed the assessee's appeal.

(3.) On further appeal, the Tribunal allowed both the claims of the assessee. At the instance of the department, the questions of law have been referred and sent up for our determination and opinion.