TMI Blog2010 (12) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... approval and after having received the consent from said companies, production was carried out - The expenditure which was incurred on the samples and casting could not be held to be capital in nature - Hence, the substantial question is decided against the Revenue and in favour of the assessee - The appeal is accordingly dismissed. - 272 of 2006 - - - Dated:- 1-12-2010 - MR. JUSTICE ADARSH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... samples as Revenue expenditure in nature? The facts necessary for adjudication, as narrated in the appeal are that the assessee filed its return for the assessment year in question declaring loss of Rs. 14,23,090/-. The assessment under Section 143(3) was completed at a loss of Rs. 3,08,229/- vide order dated 28.3.2003. During assessment proceedings, it was noticed that the assessee had deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal did not approve the approach of the assessing officer and the CIT(A) and consequently deleted the disallowance made by the assessing officer and confirmed by the CIT(A). It is how the Revenue is in appeal before this Court. We have heard learned counsel for the parties and perused the record. The point for consideration in this appeal is, whether a sum of Rs. 9,20,000/- which accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, any expenditure incurred on samples and on castings for preparing the samples cannot be held capital in nature. I further note that the assessee company filed return showing loss. Therefore, it cannot be said that there was any motive behind the expenditure shown as revenue as there was no effect on revenue. The assessed income of the assessee is in negative figure, therefore, for this ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
