9911796707
TMI Blog2008 (3) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the business thus after 10 years, the assessee agreed to abandon Rs. 3 lakhs on condition of payment of Rs. 7 lakhs by the Calcutta company. The assessee claim these 3 lakhs as deduction of business expenditure. Lower authorities and Tribunal reject the claim. Held that- the expenditure incurred was for acquiring the capital asset, that was an advantage of enduring nature in the form of distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibute their products. The assessee, a company engaged in plantation and construction activity, deposited an amount of Rs. 10 lakhs with a Calcutta based company for appointing the assessee as a distributor of the other company. The amount deposited by the assessee was Rs. 10 lakhs and was an interest-bearing deposit carrying interest at 24 per cent. per annum. However, the company at Calcutta with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow have come to a clear-cut finding that the amount of Rs. 10 lakhs deposited by the asses-see was to acquire distribution rights of the products of the other company. When the deposit was made obviously the manufacturing company before whom deposit was made had not commenced production. In the course of 10 years after deposit, the other company obviously did not start any production and the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport the case of the assessee which was a case of writing off part of the deposit to retrieve the balance amount after 10 years of deposit for the purpose of acquiring distribution rights. We therefore uphold the order of the Tribunal. Accordingly the question referred is answered against the assessee and in favour of the Revenue. 3. A copy of this judgment under the seal of the High Court and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
