9911796707
TMI Blog1997 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... DR. B. P. SARAF J.---By this reference under section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law to this court for opinion at the instance of the assessee : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the payments made by the assessee-company to Zacaria Antao and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s year relevant to the assessment year 1977-78 as also in the previous year relevant to the assessment year 1978-79. The previous year of the assessee for the assessment year 1978-79 was the year which ended on June 30, 1977. In its assessment for the assessment year 1978-79, the assessee claimed deduction of a sum of Rs. 1,50,500, out of which a sum of Rs. 42,000 pertained to liquidated damages p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer rejected the claim of the assessee for deduction on the ground that the payment was a payment of capital nature. The Income-tax Officer completed the assessment under the directions of the Inspecting Assistant Commissioner under section 144B of the Act. The above finding of the Income-tax Officer was confirmed by the Commissioner of Income-tax (Appeals) and by the Income-tax Appellate Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenditure of Rs. 92,000 incurred by the assessee in the instant case is clearly referable to the acquisition of mining leases which the assessee did not operate at all. That being so, it is capital expenditure. The Tribunal, in our opinion, was justified in holding so. In view of the above, we answer the question referred to us in the affirmative and in favour of the Revenue. This referen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
