TMI Blog2002 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... r to allow the expenditure on a spread over basis on the same lines as in section 35D ? - The deductions allowable under the Act have necessarily to be allowed in accordance with the provisions of the Act as it exists. The Act must be applied as one finds it and it was not open to the Tribunal to allow amortisation for expenditure for which the Act does not make provision for amortisation. – Quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act to allow such expenditure? (3) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in applying the real income theory to allow the expenditure on management fees and lease rent incurred prior to the commencement of production?" The assessment years are 1988-89 and 1989-90. The assessee is a company. After it had placed orders for the mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired to be regarded as a capital expenditure and allowed to be added to the cost of the plant and machinery for the purpose of claiming depreciation. The claim so made by the assessee was initially allowed by the Assessing Officer. The assessment so made was revised by the Commissioner under section 263 of the Act. He held that the expenditure incurred on management fees and lease rent prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 35D items which have not been included therein. The preliminary expenses in respect of which benefit can be claimed under section 35D have been spelt out in that section. The power reserved to include other items of expenditure has not been exercised by the authority who had been conferred with the power. The Tribunal cannot proceed to exercise that power and include within section 35D items whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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