COMMISSIONER OF INCOME TAX Vs. MUHAMMAD HUSSAIN

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961 ("the Act"), the Income-tax Appellate Tribunal, Amrit-sar Bench, Amritsar ("the Tribunal"), has referred the following" question of law to this court for opinion at the instance of the Revenue :

(2.) THIS reference pertains to the assessment year 1974-75. Mr. Anil Bhan, senior Central Government standing counsel, appears for the Revenue. None appears for the assessee.

(3.) IN the present case, for the use of the shop, the assessee was required to pay a monthly rent of Rs. 300. But for the acquisition of the lease, he was required to pay a sum of Rs. 63,000 in two annual instalments. IN such a case, the payment of monthly rent is a revenue expenditure but the payment of the lump sum in two annual instalments to acquire the lease would be a capital expenditure.