9911796707
TMI Blog1984 (10) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... Memorandum and Articles of Association was to manufacture and sale of steel tubes. This business could no be started in the year under appeal as its factory was still under construction. The assessee, therefore, deposited its funds received as share capital with the firm of M/s Shining Star Co. in which its Managing Director Surjeet Singh was also interested. The assessee earned an interest of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that since the commencement certificate had been granted to the assessee, it could be said that the business had been commenced. In this connection, he invited my attention to cl. (20) of the Memorandum and Articles of Association, which reads as under: "Subject to the provisions of the law for the time being in force to invest and deal with the moneys of the company not immediately require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled law that the provisions of Memorandum and Articles of Association are no conclusive against or in favour of the company, for the question is not what business the taxpayer proposes to carry on but what business he actually carries on and that every case must be determined on its own facts. There an elaborate discussion on this issue at pp. 119 to 121 in "The law and Practice of Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary, legal expenses, travelling expenses etc., would be expenditure incurred wholly and exclusively for the purpose of making or earning income. If I apply this principle to the case of the assessee, it will be seen that the assessee is entitled to practically all the expenses except the preliminary expenses of Rs. 3,027. The expenses allowable are on stationary, postage, directors and auditors re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
