COMMISSIONER OF INCOME TAX Vs. MODI ZEROX LTD

JUDGEMENT

(1.) THIS appeal relates to income-tax assessment of M/s Modi Zerox Ltd-a company incorporated under the Companies Act, 1956 for the assessment year 1995-96. The appeal was admitted on 25.7.2007, on the questions of law as follows:-

(2.) LEARNED counsels appearing for the revenue and respondent- assessee agree, that question nos. 1, 2, 3, 4 and 6 are covered by the judgment of this Court between the same parties in CIT & another vs. Modi Xerox Ltd (ITA No. 30 of 2001) decided on 15.4.2010.

(3.) IT is submitted by Shri R.K. Upadhyay appearing for the revenue, that Section 37, in Chapter IV- Computation of Business Income, provides for allowance of expenditure not being in the nature of capital expenditure or personal expenses of the assessee laid down or expended wholly and exclusively for the purposes of the business or profession, to be allowed in computing the income chargeable under the head 'profits and gains of business or profession'. Sub-section (4), relevant for the assessment year in question in this appeal, was omitted by the Finance Act, 1997 w.e.f. 1.4.1998. Prior to its omission, sub-section (4) as inserted by Finance Act, 1970 w.e.f. 1.4.1970, read as under:-