AJIT K. SENGUPTA, J. ( 1 ) IN this reference under Section 256 (1) of the Income tax Act, 1961, for the assessment year 1977-78, the following question of law has been referred to this court:"whether, on the facts and in the circumstances of the case, the professional charges of Rs. 5,000 paid for obtaining advice for preparation of income-tax return fall within the scope of Section 80vv of the Income-tax Act, 1961 ?"the facts shortly stated are that the assessee claimed deduction for expenses of Rs. 15,100, Rs. 5,000 included which on account of professional charges for preparation of the return for 1976, Rs. 4,100 being the travelling expenses for two visits made by the assessee's representative from Bombay to Calcutta and the balance amount being fees for income-tax appeals for the assessment years 1974-75 and 1975-76. The Income-tax Officer did not allow the said expenses as deduction. ( 2 ) BEING aggrieved, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who allowed Rs. 5,000 under Section 80vv of the Act. The assessee then took the matter to the Tribunal and submitted that all these expenses were allowable and the Commissioner of Income-tax (Appeals) was not justified in restricting the allowance to Rs. 5,000 only. According to him, Section 80vv refers only to expenditure incurred by the assessee in respect of any proceedings before any income-tax authority or the Appellate Tribunal or any court relating to determination of any liability under this Act. This section does not refer to the travelling expenses incurred by the representatives of the assessee in coming from any place in order to give advice or appear before the income-tax authorities, the Income-tax Appellate Tribunal or any court. The expenses of Rs. 4,100 are, therefore, allowable. Similarly, the professional charges for consultation paid at Rs. 5,000 are also allowable because they have not been incurred in connection with the appearance before any of the authorities mentioned above. The balance of Rs. 6,000 were in connection with their fees for income-tax appeals for appearing before the authorities mentioned above. Thus, the assessee is entitled to the entire deduction. ( 3 ) THE contention of the Revenue was that these expenses were incurred in connection with the proceedings before the authorities mentioned above. The balance of Rs. 6,000 were in connection with their fees for income-tax appeals for appearing before the authorities mentioned above. Thus, the assessee is entitled to the entire deduction. ( 3 ) THE contention of the Revenue was that these expenses were incurred in connection with the proceedings before the authorities mentioned above. It hardly makes any difference whether those expenses were incurred in connection with the consultation, travelling or appearance before the said authorities. ( 4 ) THE Tribunal held that the assessee is entitled to the deduction of Rs. 5,000 incurred in connection with the advice taken from various consultants. These expenses have not been incurred for appearing before any of the authorities mentioned under Section 80vv of the Act. Same is the position with regard to the travelling expenses of the consultants who came from Bombay to Calcutta in connection with these matters. These expenses were not paid for appearing before the authorities mentioned above. These expenses are, therefore, a permissible deduction. There is no dispute with regard to the expenses which have been incurred for appearing before the authorities mentioned above. Here, the assessee has incurred the expenses of Rs. 6,000. The assessee cannot claim any deduction exceeding Rs. 5,000. This being the position, the assessee cannot get a deduction of Rs. 1,000, i. e. , exceeding Rs. 5,000. The Tribunal, therefore, restricted the disallowance to Rs. 1,000. ( 5 ) WE have heard the learned advocates appearing for the parties. ( 6 ) SECTION 80vv of the Act (since omitted by the Finance Act, 1985, with effect from April 1, 1986) reads as follows :"80vv. Deduction in respect of expenses incurred in connection with certain proceedings under the Act.-- In computing the total income of an assessee, there shall be allowed by way of deduction any expenditure incurred by him in the previous year in respect of any proceedings before any income-tax authority or the Appellate Tribunal or any court relating to the determination of any liability under this Act, by way of tax, penalty or interest : provided that no deduction under this section shall, in any case, exceed in the aggregate five thousand rupees. "it is, therefore, evident that, in connection with the proceedings before the income-tax authority or the Appellate Tribunal or any court relating to the determination of any liability under the Income-tax Act by way of tax, penalty or interest, deduction may be allowed, but such deduction shall not, in any case, exceed in the aggregate five thousand rupees. ( 7 ) THE facts found by the Tribunal have not been challenged. The travelling expenditure of the company's executives in connection with the business of the assessee is allowable. The expenditure incurred in preparation of the return and for obtaining advice cannot be held to be an expenditure in connection with the appearance before the income-tax authority, the Tribunal or court in connection with the determination of the liability under the Act by way of tax, penalty or interest. Such expenditure does not come within the purview of that section and, accordingly, it was rightly disallowed. Only Rs. 6,000 was incurred by the assessee, as found by the Tribunal, being the fees of the income-tax lawyer in connection with the appearance before the appellate authorities or the Tribunal. Accordingly, the Tribunal rightly restricted the disallowance to Rs. 1,000 and allowed Rs. 5,000 under Section 80vv. We are of the view that, on the facts of this case, the Tribunal came to a correct conclusion. ( 8 ) FOR the reasons aforesaid, we answer the question in this reference in the negative and in favour of the assessee.