Commissioner Of Income-Tax vs Ganga Properties Ltd. on 17 June, 1969
11. We find that the assessee relied on the decision of Hon'ble Calcutta High
Court in the case of CIT Vs. Ganga Properties (1993)199 ITR 94 (Cal) and CIT Vs.
Karanpura Collieries Ltd. (1993) 201 ITR 498 (Cal), wherein Hon'ble Calcutta High
Court held that just to maintain company some expenses are bound to be incurred by
the assessee. We are in agreement with the findings of CIT(A) that expenditure
claimed qua rental income should not have been allowed and rightly disallowed by
AO and confirmed by CIT(A) but in term of both the decisions of Hon'ble Calcutta
High Court cited supra, we direct the AO to find out how much expenses are
relatable to the company to maintain its establishment for complying with statutory
obligations as are required to be allowed. Accordingly, this issue is partially set aside
to the file of AO for fresh adjudication in terms of the above. This is a common issue
of all the aforesaid appeals and hence, same decision will apply in other appeals also.