ORDER

1. The question referred for decision reads as under :

"Whether in the facts and circumstances of the case, the Tribunal a was right in law in holding that the amount of Rs. 1,50,000 paid to Registrar of Companies, as filing fee for enhancement of capital was not revenue expenditure."

2. Since there was a conflict of opinion on this point amongst the various High Courts it was thought expedient by the Income Tax Appellate Tribunal Chandigarh Bench, to directly refer the question for decision by this Court under Section 257 of the Income Tax Act. The factual background in which the question arises for determination is that the applicant M/s. Punjab State Industrial Development Corporation Ltd. filed the return of its total income declaring an income of Rs. 13,83,049 on 30-6-1979. In the Profit and Loss Account an amount of Rs. 1,50,000 was claimed as revenue expenditure, the same having been paid to the Registrar of Companies as filing fee for enhancement of capital of the company. The Inspecting Assistant Commissioner of Income Tax (Assessment), Chandigarh, allowed the expenditure but the Commissioner of Income Tax, Patiala in exercise of power conferred on him under Section