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TMI Blog1998 (8) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Income-tax (Appeals) to admit the assessee's grounds relating to the weighted deduction taken before him and dispose of the matter on merits when the same was not raised before the Assessing Officer? (2) Whether under the facts and circumstances of the case, the Tribunal was justified that the expenses incurred by the assessee in respect of the wives of the directors were necessary for the business of the assessee-company?" We have heard Mr. G. K. Joshi, learned standing counsel for the Revenue, assisted by Mr. U. Bhuyan, and Shri R. Gogoi, learned counsel for the assessee, assisted by Shri H. Roy. Shri R. Gogoi, learned counsel for the assessee, has submitted that so far as question No. 1 of the reference is concerned, an id ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that the expression "wholly and exclusively" used in section 10(2) of the Act, 1922, does not mean "necessarily", and such expenditure, if incurred for promoting business, the assessee can claim deduction. In the case of CIT v. Navsari Cotton and Silk Mills Ltd. [1982] 135 ITR 546, the Gujarat High Court laid down certain guidelines and also some positive and negative tests for deciding whether a particular expenditure is a business expenditure and that will be taken or not. There is no dispute at the Bar regarding the proposition of law in respect of a business expenditure. Learned counsel for the assessee submits that the jurisdiction of the High Court under section 256(2) of the Act is advisory in nature and only a question of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on fact for one reason or another, reference of a proper question challenging those findings must first be sought before those findings can be challenged before the High Court : See India Cements Ltd. v. CIT [1966] 60 ITR 52, 64 (SC), and Hazarat Pirmahomed Shah Saheb Roze Committee v. CIT [1967] 63 ITR 490, 496 (SC). No attempt was made before the Tribunal to have any such question referred and in the absence of a proper question it was not open to the High Court to accept the findings of the Appellate Assistant Commissioner in preference to those given by the Tribunal or to come to any independent conclusion itself on facts." As the validity of the findings of fact arrived at by the Tribunal has not been challenged, this court cannot en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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