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Issues involved:
The judgment addresses four questions of law regarding income tax deductions for specific expenses u/s the Income-tax Act, 1961. Question 1: The issue revolves around the deductibility of a contribution to a political party (Indian National Congress) amounting to Rs. 12,500. The Income-tax Officer disallowed the expense, a decision upheld by the Appellate Assistant Commissioner and the Tribunal based on precedents from earlier cases involving similar disallowances. Question 2: Concerns the deductibility of expenses (totaling Rs. 1,24,310) incurred for the inauguration of the assessee's units. The Income-tax Officer disallowed Rs. 90,771 of these expenses, considering them capital in nature. However, the Tribunal found these expenses to be incurred for the business's publicity and hence allowable as revenue deductions, citing relevant case law. Question 3: Relates to the allowance of Rs. 1 lakh out of Rs. 1,14,249 paid to outgoing members of the Employees' Provident Fund Trust. The Income-tax Officer and the Tribunal limited the allowance to Rs. 1 lakh, a decision deemed unjustified by the High Court based on a previous ruling. Question 4: Addresses the deductibility of Rs. 35,621 spent on running a DCM Foot Ball Tournament. The Income-tax Appellate Tribunal had previously upheld a similar claim by the assessee for an earlier assessment year, and based on this precedent, the High Court rules in favor of the assessee for this question. The judgment concludes by answering each question: Question 1 in favor of the Revenue, and Questions 2, 3, and 4 in favor of the assessee. No costs are awarded in this matter.
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