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2011 (5) TMI 50 - HC - Income TaxDisallowance - Capital or revenue expenditure - cessation of liability - Held that:-the Tribunal returned a finding of fact that there were merely liabilities which had been written back to the profit and loss account only to cut down paper work in the books of account. The Tribunal thus concluded that there was no cessation of liability and hence, revenue was not justified in bringing the said amounts to tax. - findings of tribunal upheld. Regarding capital expenditure on scientific research under Section 35(i)(iv) - tribunal in its order for the assessment year 1982-83 simply followed its own order passed in assessment year 1981-1982 and allowed the deduction - Tribunal should have decided on merits the admissibility of the expenditure in terms of the then prevailing provisions of the Act. - matter remanded back to tribunal. Expenditure on providing food and beverages to employees in a guest house - tribunal decision allowing the deduction not disturbed Capital Expenditure - payment made for acquiring technical know-how from a foreign collaborator to set up a new plant - Tribunal came to the conclusion that 50% of the expenditure incurred by the assessee was on in the nature of capital expenditure while the balance was on revenue account - The matter is remanded to the Tribunal to do the needful in this regard - The appeal is disposed of
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