COMMISSIONER OF INCOME TAX Vs. BANK OF INDIA

JUDGEMENT

(1.) THE only question of law referred to this court at the instance of the Revenue under section 256(1) of the Income -tax Act, 1961, is :

(2.) THE assessee, a banking company, had incurred an expenditure of Rs. 39,590 on obtaining lease premises and claimed deduction. Mr. Dhanuka learned counsel for the Department, fairly stated that this court has in the case CIT v. Cinceita Private Ltd. : [1982]137ITR652(Bom) , taken the view that types of expenditure incurred in connection with obtaining property on lease and in connection with the execution of lease agreement are allowable as deductions. He, however, contended that in the present case the details of expenditure are not available and what is mentioned in the statement of case is that the sum of Rs. 39,590 has been spent on obtaining lease of the premises. Such an expenditure, according to him, is not covered by the decision and requires consideration. Mr. Dastur, learned counsel for the assessee, on the other hand, stated that the assessee is a nationalised bank having branches all over India and abroad. The expenditure of the nature involved herein is being incurred by the assessee from year to year. The Income -tax Appellate Tribunal has followed its earlier decision in ITA No. 2758 (Bom) /1970 for the assessment year 1969 -70, in the case of the assessee -bank itself, while allowing the expenditure in dispute as deduction. It is stated that this court's decision in the case of CIT v. Cinceita Private Ltd. : [1982]137ITR652(Bom) , is squarely applicable in this case.

(3.) NO order as to costs.