COMMISSIONER OF INCOME TAX Vs. MIHIR TEXTILES LTD.

JUDGEMENT

(1.) THE Tribunal, Ahmedabad, has referred the following two questions for the opinion of this Court under Section 256(1) of the IT Act, 1961:

(2.) IN the course of assessment proceedings for asst. yr. 1985 -86, the assessee claimed allowance of Rs. 62,056 being payment made to Mettur Beardsell Ltd. for using trademark 'Tebilized' on the ground that it was revenue expenditure. The assessee also claimed that the amounts of leave travel concession and medical insurance premium paid by the company for the benefit of managing director should not be taken into consideration for the purpose of calculating disallowance under Section 40(c) of the IT Act, 1961. These two claims were rejected by the ITO.

(3.) THOUGH the assessee is duly served, it has neither appeared through its constituted agent nor through a lawyer. This Court has heard Ms. Monaben M. Bhatt, learned Counsel for the Revenue at length and considered the facts of the case.