COMMISSIONER OF INCOME TAX Vs. ORIENT BEVERAGES LTD

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1967-68, the following question of law has been referred to this court :

(2.) Shortly stated, the facts are that the assessee-company derived income from letting out its own house property. While computing the said income, the assessee claimed deduction of Rs. 15,000 paid by it as brokerage to one Mr. Kamlesh Gulati for letting out the second floor of the premises No. 225, Lower Circular Road, Calcutta. The income-tax authorities disallowed this claim as they were of the opinion that such deduction was not permissible while computing the taxable income from house property.

(3.) On second appeal, at the instance of the assessee, the Tribunal directed that disallowance of Rs. 15,000 be deleted by observing as under: