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PETITIONER: THE COMMISSIONER OF INCOME-TAX, WEST BENGAL
Vs.
RESPONDENT: ROYAL CALCUTTA TURF CLUB
DATE OF JUDGMENT: 28/11/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 1028 1961 SCR (2) 729 CITATOR INFO : R 1964 SC1722 (9) F 1972 SC 159 (4) R 1972 SC 397 (5)
ACT: Income Tax-Expenditure for preservation of business--If wholly and exclusively laid out for the Purpose of business--Indian Income Tax Act, 1922 (XI of 1922), S. 10 (2)(XV).
HEADNOTE: The business of the respondent club was to run race meetings on a commercial scale. The club did not own any horse, and therefore did not employ jockeys. it was a matter of some importance to the club that there were jockeys of requisite skill and experience in sufficient numbers who would be available to the owners and trainers because otherwise the running of the race meetings would not be commercially profitable and its interest would suffer and it might have had to abandon its business if it did not take steps to make jockeys of the necessary calibre available. Therefore it established a school for the training of Indian boys as jockeys and claimed the sums spent on the running of the school as deductable amount under s. 10 (2)(XV) of the Indian Income Tax Act. The question was whether in the circumstances of the ...