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PETITIONER: COMMISSIONER OF INCOME-TAX,WEST BENGAL
Vs.
RESPONDENT: H. HIRJEE.
DATE OF JUDGMENT: 17/04/1953
BENCH: SASTRI, M. PATANJALI (CJ) BENCH: SASTRI, M. PATANJALI (CJ) MUKHERJEA, B.K. DAS, SUDHI RANJAN HASAN, GHULAM
CITATION: 1953 AIR 324 1953 SCR 714 CITATOR INFO : RF 1961 SC 663 (14) RF 1967 SC 444 (5,8)
ACT: Indian Income-tax Act (XI of 1922), s. 10 (2) (xv)-Business expenditure-Expenses incurred by businessman in defending against criminal prosecution for offence under Hoarding and Profiteering Act-Finding of fact-When final.
HEADNOTE: The respondent who carried on business was prosecuted under s. 13 of the Hoarding and Profiteering Ordinance of 1943 on a charge of selling goods at an unreasonable price. He was finally acquitted and claimed in his assessment for a subsequent year that the sum of Rs. 10,895 which he had spent in defending himself against the charge should be deducted from his income under s. 10(2)(xv) of the Income- tax Act as "expenditure laid out or expended wholly and exclusively for purposes of the business". The Appellate Tribunal held that in the absence of any evidence that personal liberty was likely to be jeopardised there was only a chance of his being fined, that the object of saving himself from fine was so inextricably mixed with the main purpose of the defence which was solely for...