JUDGMENT:-

The Judgment of this case is the decision of the case Lakshmi Sugar Mills case and hold
on the analogy of that decision that the amount of Rs 50,000 contributed by the assesse
represented expenditure on the revenue account. The appeal was accordingly dismissed as the
expenditure of the sum of Rs. 22,332 is concerned. But, so far as the expenditure of the sum of
Rs. 50,000 is concerned, and the expenditure was of nature of revenue expenditure laid out
wholly and exclusively for the purpose of the assesse’s business and was therefore, allowable as
a deduction under section 10(2)(xv) of the act and allow the appeal to this limited extent. Since
the assessee has partly won and partly lost, so the fair order of cost would be that each party
should bear and pays its own costs throughout.