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TMI Blog1992 (9) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing question of law for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that an amount of Rs. 16,750 was allowable as, revenue expenditure ? " After hearing learned counsel for both the parties, we found that the question referred to us is required to be reframed so as to give proper effect to the question in fact ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as given are reproduced herein : "Every year, the Sangh has to provide 25 per cent. out of gross profit towards loan charges to the Government. " Clause (7) of the said terms and conditions provides as under: " Rs. 3,35,008 be repayable in five equal annual instalments. The guarantee amounts at 1/2 per cent. shall be remitted to the Government treasury." If both the clauses are read togeth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of interest and as per the terms and conditions of the loan, provision of Rs. 9,750 and Rs. 7,000 was made in the two accounts, and there was, thus, overriding title to the income of the assessee to the above extent, i.e., to an extent of Rs. 16,750. Being aggrieved by the order of the Appellate Assistant Commissioner, the matter was carried further in second appeal to the Tribunal and the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not belong to the assessee and by way of overriding title which was created in favour of the Government under the terms and conditions of loan, the amount was required to be passed over to the Government. This position clearly emerges from the terms and conditions of the agreement of loan, and in our opinion, if the said terms and conditions are properly construed, as is done by the Appellate Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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