{"id":102180,"date":"1993-02-10T00:00:00","date_gmt":"1993-02-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/slm-maneklal-industries-vs-commissioner-of-income-tax-on-10-february-1993"},"modified":"2018-09-25T00:43:25","modified_gmt":"2018-09-24T19:13:25","slug":"slm-maneklal-industries-vs-commissioner-of-income-tax-on-10-february-1993","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/slm-maneklal-industries-vs-commissioner-of-income-tax-on-10-february-1993","title":{"rendered":"Slm Maneklal Industries vs Commissioner Of Income Tax on 10 February, 1993"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Slm Maneklal Industries vs Commissioner Of Income Tax on 10 February, 1993<\/div>\n<div class=\"doc_author\">Author: G Nanavati<\/div>\n<div class=\"doc_bench\">Bench: G Nanavati, S Soni<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>G.T. Nanavati, J.<\/p>\n<p>1. The Tribunal has referred the following two question to this Court under s. 256(1) of the IT Act, 1961 :\n<\/p>\n<p>&#8220;(1) Whether, on the facts and in the circumstances of the case, bank guarantee commission on Rs. 27,963 is capital or allowable revenue expenditure ?\n<\/p>\n<p>(2) Whether, on the facts and in the circumstances of the case, the assessee is entitled in law to the deduction of the surtax liability of Rs. 21,163 in the computation of its business income as allowable business expenditure ?&#8221;\n<\/p>\n<p>2. Following the decision in CIT vs. Vallabh Glass Works Ltd. (1982) 137 ITR 389 (Guj), we answer the question by stating that bank guarantee commission is capital expenditure. Therefore, question No. 1 is answered against the assessee and in favour of the Revenue. Question No. 2 is answered in the negative, that is in favour of the assessee (sic) and against the Revenue (sic) following the decision in SLM Maneklal Industries vs. CIT  (1988) 172 ITR 176 (Guj).\n<\/p>\n<p>3. The reference is disposed of accordingly with no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Slm Maneklal Industries vs Commissioner Of Income Tax on 10 February, 1993 Author: G Nanavati Bench: G Nanavati, S Soni JUDGMENT G.T. Nanavati, J. 1. The Tribunal has referred the following two question to this Court under s. 256(1) of the IT Act, 1961 : &#8220;(1) Whether, on the facts and in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-102180","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Slm Maneklal Industries vs Commissioner Of Income Tax on 10 February, 1993 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/slm-maneklal-industries-vs-commissioner-of-income-tax-on-10-february-1993\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Slm Maneklal Industries vs Commissioner Of Income Tax on 10 February, 1993 - Free Judgements of Supreme Court &amp; 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