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1943 Supreme(Cal) 219
CALCUTTA HIGH COURT
Derbyshire, C.J, Gentle, J.
COMMISSIONER OF Income Tax, BENGAL - Appellant
Versus
MESSRS. GURUPADA DUTTA & Ors.. - Respondent
Special Jurisdiction No. 6 of 1942
Decided On : 10-06-1943
The rate imposed under the Bengal Village Self-Government Act, 1919, on a person occupying a building within the Union and using the same for the purpose of business is an allowable deduction in computing the profits of the business under section 10 of the Indian income tax Act.
Headnote:
Income Tax - Bengal Village Self-Government Act, 1919 - Allowable Deduction for Business - Yes
Fact of the Case:
The Commissioner of income tax appealed against the opinion of the Appellate Tribunal regarding the allowable deduction for the rate imposed under the Bengal Village Self-Government Act, 1919, on a person occupying a building within the Union and using the same for the purpose of business.
Finding of the Court:
The Court found that the rate imposed under the Bengal Village Self-Government Act, 1919, on a person occupying a building within the Union and using the same for the purpose of business is an allowable deduction in computing the profits of the business under section 10 of the Indian income tax Act.
Issues: The main issue was whether the rate imposed under the Bengal Village Self-Government Act, 1919, on a person occupying a building within the Union and using the same for the purpose of business is an allowable deduction in computing the profits of the business under section 10 of the Indian income tax Act.
Ratio Decidendi: The Court held that the rate imposed under the Bengal Village Self-Government Act, 1919, on a person occupying a building within the Union and using the same for the purpose of business is indeed an allowable deduction in computing the profits of the business under section 10 of the Indian income tax Act.
Final Decision: The reference was answered in favor of the respondent, and the respondent was awarded costs.
JUDGMENT
DERBYSHIRE, C.J. - We have had the advantage of hearing Mr. Chakravarti argue the case on behalf of the Commissioner of income tax against the opinion which has been expressed by the Appellate Tribunal. Notwithstanding that argument I am of the opinion that the opinion expressed by the Appellate Tribunal is the correct one and I agree with the reasons that they have given for that opinion. I do not propose to complicate the matter by adding other reason.
In my opinion the question asked "Whether the rate imposed under the provisions of the Bengal Village Self-Government Act, 1919, on a person occupying a building within the Union and using the same for the purpose of business is an allowable deduction in computing the profits of the business u/s 10 of the Indian income tax Act" should be answered in the following way - "Yes."
The reference being a matter of public importance the respondent in this matter will be awarded costs to the amount of seven gold mohairs inclusive of all costs.
GENTLE, J. - I agree.
Reference answered accordingly.
