1935 (9) TMI 9

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... other business? The facts are these: The assessee is a company incorporated under the Indian Companies Act. The company carried on business in motor accessories at Madras, Bombay, Coimbatore and Ootacamund, and in mica mine at Nellore. In this reference before us we are concerned with a sum of ₹ 5,420 which the company claims it is entitled to deduct for expenses incurred in carrying on the mica business. The mining business was started at Nellore in 1926. It was worked till November 1927 when the production was stopped on account of a cyclone. With a view to resume the production the company did some prospecting work and incurred an expenditure of ₹ 5,420 in 1928-29. The amount was made up of the expenses on account of salary, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... After the receipt of this finding this Court directed the Commissioner to refer the point stated at the beginning of this judgment. The question for decision is whether the assessee in the circumstances of the case may be said to have been carrying on the business of the mica mining, during the year in question, for it is clear that the loss to be allowable must result from the carrying on of a business (Section 10). It is argued on behalf of the Commissioner that the mica mining business originally carried on by the company as one of its businesses came to an end in 1927, that it was not resumed at all, and that in the circumstances the expenses incurred with a view to resume the business must be considered to be loss of a capital nature .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rought to our notice as the decision whether the business was being carried on must depend in each case on its own facts and not on any general theory of law. Having regard to the circumstances of the present case we think the expenditure incurred by the company in 1928-29 was with respect to the carrying on of the mica business which it carried on along with its other business and the amount is therefore allowable as a deduction against the profits and gains of the assessee's other business. We answer the question accordingly. The assessee will get ₹ 250 for his costs and he will also get refund of the ₹ 100 deposited by him. STONE, J.--I agree. KING, J.--I agree. Reference answered accordingly.
Case laws, Decisions, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X