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TMI Blog1991 (10) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... proof. The assessee filed appeal before the AAC. The AAC held that the expenses were pre-business expenses and as such were not allowable. The assessee is now in further appeal before the Tribunal. 2. In the grounds of appeal reference is made to Board's Circular No. F. 13A/20/68-114-II, dt. 3rd Oct., 1968. However, at the time of arguments it is stated by learned counsel for the assessee that the assessee did not rely on said circular. The submission on behalf of the assessee was that the expenses in question were not per-business expenses as held by the AAC. These expenses were wholly and exclusively for the purpose of profession and as such were allowable as deduction under s. 37(1) of the Act. It was stated that the assessee had com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case the expenses cannot be said to be excessive. In the paper book the assessee has filed vouchers in proof of the expenses. Considering the entire circumstances, these expenses were allowable as deduction. I, therefore, direct the ITO to allow deduction of the said amount. 5. On account of shifting of professional premises the assessee had got published intimation in the newspapers about the change of telephone number. At page 56 of the paper book the assessee has filed copies of the intimations which were published. The assessee has incurred Rs. 900 in said publication and had claimed deduction in respect of that amount. The ITO disallowed the said deduction by making general observation that it was excessive and without proof. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of mind. When the premises were taken on rent with the object of carrying on profession as orthopaedic surgeon, the profession would be regarded to have commenced and the expenses could not be said to be pre-commencement expenses as observed by the AAC. The ld. Deptl. Representative submitted that the expenses should be regarded as capital expenses. He relied on decisions in Hylam Ltd. vs. CIT (1973) 87 ITR 310 (AP); CIT vs. Jamshedpur Engineering and Machine Mfg. Co. Ltd. (1985) 49 CTR (Pat) 132 : (1986) 157 ITR 730 (Pat); CIT vs. Menora Hosiery Works Pvt. Ltd. (1977) CTR (Bom) 525 : (1977) 109 ITR 714 Bom and Hotel Diplomat vs. CIT (1980) 125 ITR 781 (Del). This submission cannot be accepted. The question whether the expenses were in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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