COMMISSIONER OF INCOME TAX Vs. RALLIS INDIA LTD

JUDGEMENT

(1.) At the instance of the Commissioner, West Bengal-II, the following question of law has been referred to this court under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1968-69 :

(2.) The facts are that the assessee claimed Rs. 24,738 as expenses for repairing of rented flats as a permissible deduction. The assessee had made repairs to the flats which it had taken on rent for the purpose of its employees. The Income-tax Officer held that as the repairs had been made to the flats which were not owned by the assessee but had been taken on rent by the assessee, the deduction claimed was not allowable.

(3.) In appeal, the Appellate Assistant Commissioner held that the repair expenses amounted to business expenses as the premises in which repairs had been effected were business premises, even though the assessee was not the owner thereof.