1993 (6) TMI 31

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..... three separate references as identical but separate questions arose in respect of the three different years, namely, 1973-74, 1974-75 and 1975-76. As the Tribunal has failed to do so, we direct the office to treat Income-tax Reference No. 548 of 1980 as a reference arising out of the order made for the assessment year 1973-74, and Income-tax Reference No. 548A of 1980 and Income-tax Reference No. .....

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..... tax Officer rejected the claim of the assessee on the ground that the expenditure claimed was disproportionate to the income. As the assessee was aggrieved by this disallowance, it preferred three separate appeals to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner accepted the claim of the assessee and allowed the appeals filed by the assessee to that extent. The Dep .....

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..... that the expenditure was bona fide incurred and that the same related to the business activity, then it would become deductible as the same is permitted by the provisions of law. Whether business expenditure is deductible or not would depend upon the relevant provisions of law and not how the income was earned after incurring that expenditure. We, therefore, hold that the Tribunal was right in ho .....

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