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2012 (7) TMI 13 - AT - Income TaxFranchise fees - revenue or capital expenditure - assessee has been provided with special know how of preparing food and beverages and also been given initial training and on going training in relation to restaurant business - Held that:- Since Revenue failed to bring any material on record to show that the assessee had paid any price for acquisition of any capital assets and that the payment as a franchise fee by the assessee was not only a business fee for use of support service like running and up-keeping the restaurant. Hence, order of CIT(A) allowing the same as revenue expenditure is upheld - Decided against The Revenue. Admission of additional evidence by CIT(A) without offering opportunity to Assessing Officer to verify the evidences - legal expenses - Revenue contending same to be capital expenditure on ground of same being incurred before commencement of business - Held that:- There was clear violation of Rule-46. Assessing Officer should also have an opportunity of verifying the evidences, which were produced before the CIT (Appeals). Hence, we remand the matter back to the file of the Assessing Officer for re-adjudicating the issue afresh.
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