ISMAIL J.

The question referred to this court by the Income-tax Appellate Tribunal, Madras Bench, under section 256(1) of the Income-tax Act, 1961, for its opinion, relates to a claim of the assessee for deduction of a sum of Rs. 20, 000 paid by it to the Congress Party as donation The Income-tax Officer who dealt with the matter at the initial stage pointed out that he was not able to follow as to how the said donation could be allowed as an "expenditure" as it was not incidental to the business. The Appellate Assistant Commissioner who disposed of the appeal preferred by the assessee stated that it was well-settled that donation to political parties cannot come in for allowance as business expenditure, and found that the action of the Income-tax Officer was justified. In the second appeal, the Tribunal pointed out that it heard the counsel for the assessee as well as the departmental representative who relied on the decision of the Calcutta High Court in Indian Steel and Wire Products Ltd. v. Commissioner of Income-tax to which we shall have occasion to refer further, and stated that according to that judgment, which discussed all the arguments for and against the clai