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2003 (2) TMI 42 - HC - Income Tax"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding the view that the provisions of rule 8(2) were applicable to the case of the assessee and that the allowance by way of deduction be granted?" - In our view, neither the Assessing Officer nor the Commissioner of Income-tax (Appeals) have given any reason for holding this expenditure as capital expenditure except curtly saying that these are capital expenditure. This is not supported by any reason. If we look at the nature and character of the expenditure and the purposes for which the nursery is being maintained, then, it seems that it is definitely a revenue expenditure for the maintenance of the plantation for the purpose of carrying on the business itself. It is not an investment of fresh capital unless it is utilised for the purpose of expanding the plantation.
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