Case: T. Stanes and Company Limited Vs. Commissioner of Income Tax

The following question was referred to the High Court by theAppellate Tribunal under section 66(1) of the IndianAct, 1922. (see CIT v. T. Stanes and Co, Ltd. 1976 (105) ITR 251 "Whether, on the facts and in the circumstances of the case, the assessee would be entitled to claim as deductions the sums of Rs. 13, 789, Rs. 16, 587, Rs. 31, 454, Rs. 44, 622, Rs. 12, 907 and Rs. 15, 570 respectively, for the assessment years5, or any part thereof under section 10(2)(xv) or under the corresponding provisions of section 37 of theAct of 1961?"in view of the peculiar facts and circumstances of this case, the High Court answered the question partly in favour of the Revenue in the following terms (see p. 261)"We, accordingly, hold that (1) in respect of the assessment years1, the sums of Rs. 13, 789 and Rs. 16, 587 are not allowable deductions under section 10(2)(xv) of the Act, and (2) except to the extent of Rs. 1, 004, Rs. 5, 070, Rs. 2, 352 and Rs. 6, 716 referable to the excess of amounts paid over and above the income of the fund and which was charged to the profit and loss account in the assessment years64 andrespectively, the balance of the amount in these assessment years are not allowable deductions." *

Court's reasoning:
We have heard learned counsel for the parties. We have been taken through the reasoning of the High Court on the basis of which the above quoted answer was rendered. We see no infirmity in the same. There is, thus, no ground to interfere with the High Court judgment.