JUDGMENT :

S.D. SHAH, J.

1. On being moved under section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law for our opinion :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the annual listing fee paid to the stock exchange is allowable revenue expenditure of the assessee-company ?"

2. In order to answer the aforesaid question, a few relevant facts shall have to be stated :

(i) The assessee is a public limited company and, for the relevant assessment year 1975-76, its accounting year ended on 31 December, 1974, the assessee claimed a sum of Rs.1,200 as annual listing fee paid to the stock exchange as deductible revenue expenditure. The Income-tax Officer disallowed the claim by making a remark while computing the taxable income to the following effect : 'Annual listing for purpose of capital'.

(ii) Being aggrieved by the said order of the Income-tax Officer, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals), who decided the said appeal by making one observation only. In appeal to the Tribunal, it took the view that listing fees have