COMMISSIONER OF INCOME TAX Vs. RUPSA RICE MILL

JUDGEMENT

(1.) THIS is a reference made under Section 256(1) of the Income-tax Act of 1961 (hereinafter referred to as "the Act") at the instance of the revenue. The following question has been referred for the opinion of the court by the Appellate Tribunal:

(2.) ASSESSEE is a nee mill. The year of assessment is 1963-64. ASSESSEE claimed deduction of a sum of Rs. 12,137 as an item of business expenditure and states that this sum had been given for construction of a primary health centre building at Rupsa where the mill was located. The Income-tax Officer disallowed the claim on the ground that it was a donation for the benefit of the local public in general and could not amount to a revenue expenditure of the assessee.

(3.) THE assessee shall have its costs. Hearing fee is assessed at rupees one hundred.