COMMISSIONER OF INCOME TAX Vs. ASSAM ASBESTOS LIMITED

JUDGEMENT

(1.) THIS is an income -tax reference at the instance of the Revenue in pursuance of an order passed by this Court on 29th Jan., 1996, in Civil Rule No. 4(M) of 1995. The Tribunal, Guwahati Bench, Guwahati, has referred the following questions:

(2.) WE have heard Shri G.K. Joshi, appearing on behalf of the Revenue, and Shri A.K. Maheswari, appearing for the assessee -respondent.

(3.) SHRI G.K. Joshi, appearing for the Revenue, has submitted that there is no dispute insofar as question No. 1 is concerned which may be answered in the affirmative. A perusal of the first question, as referred, shows that an answer is required, as to whether the amount of expenses on foreign tour of the dealers was allowable business expenditure, if so, whether the Tribunal was correct in law in upholding the order passed by the CIT(A) deleting the disallowance made by the assessing authority. According to learned counsel, the latter part, viz., disallowance deleted by the CIT and upheld by the Tribunal was not correct. The expenditure incurred is allowable business expenditure but not in full.