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TMI Blog1951 (1) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ference made by the Income-tax Appellate Tribunal, Calcutta Bench, under Section 66(1) of the Indian Income-tax Act at the instance of the Commissioner of Income-tax in which the following question has been framed for the opinion of this Court :- "Whether in the circumstances of this case the Tribunal was right in holding that the sum of ₹ 10,895 spent in defending the criminal procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or expended wholly and exclusively for the purposes of any business, profession or vocation. 4. The Income-tax Officer disallowed this amount as an allowance, but his decision was reversed by the Appellate Assistant Commissioner and the latter's view was upheld by the Appellate Tribunal on appeal. 5. It was argued before the Appellate Tribunal that the amount expended could not be said to ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a good business man and also to save his stock from being undersold if the Court held that the prices charged by the respondent were unreasonable." 6. In every criminal prosecution where the matter is defended to protect the good name of a business or a professional man, the fear of possible fine or imprisonment must always be there. But the Tribunal have pointed out that this was so inext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the assessee could be allowed the deduction. The first test would be whether the assessee was charged with regard to a transaction which took place in the ordinary course of business, and the other test would be whether he was charged in his capacity as a trader. If these two tests were satisfied and the Court came to the conclusion that the primary object of incurring the expenditure was to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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