INDRA SINGH Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is a reference under Section 66(1) of the Indian Income-tax Act.

(2.) The Assessee is a private limited company. It has income from business, property and other sources, including a colliery named West Chirimiry Colliery. There was a motor road running upto the colliery. This road was discarded and the Assessee wrote off the value of the road in its Profit and Loss Account, namely, Rs. 24,578.

(3.) For the assessment year 1957-58 (relevant accounting year being year ended on March 31, 1957), the Assessee claimed (i) deduction of a sum of Rs. 27,574, being the amount of wealth-tax assessed for the year in question and (ii) Rs. 24,578 written off in the Profit and Loss Account, as representing the value of the motor road, from the computation of its total income. Both the claims for deductions were disallowed by the Income-tax Officer.