COMMISSIONER OF INCOME TAX Vs. HOECHST PHARMACEUTICALS LIMITED

JUDGEMENT

(1.) ON the findings recorded by the Tribunal it has been established in this case that an expenditure of Rs. 15,500 was incurred by the assessee for the purpose of acquiring office premises at New Delhi and that in connection with the same transaction, stamp duty of Rs. 750 has been paid. The question was whether these payments were allowable deductions while computing the total income of the assessee in respect of the assessment year 1964 -65. The claim of the assessee was rejected by the Income -tax Officer as also by the Appellate Assistant Commissioner. The Appellate Tribunal held that the expenditure claimed by the assessee was a revenue expenditure and was, therefore, allowable. The following question was, therefore, referred at the instance of the revenue under section 256(1) of the Income -tax Act, 1961 :

(2.) MR . Joshi on behalf of the revenue has contended that the lease was for a period of five years and that the expenditure incurred must be treated as having been incurred for the purpose of bringing into existence an asset or advantage of an enduring character.