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2015 (2) TMI 818 - HC - Income TaxAddition on excess consumption of heptene and catalyst - Tribunal deleted the addition - Held that:- From the discussion of the Tribunal, it clearly emerges that the assessee had given reasons for excess consumption of heptene and catalysts. The change in the manufacturing process was also demonstrated. Such grounds were also placed before the Tribunal in the earlier years in which the assessee's stand was accepted. We have also perused the orders of the Tribunal made in the earlier assessment years, i.e., the assessment years 1994-95 and 1995-96 where such a question cropped up. Apparently, the Revenue has not carried the decision of the Tribunal in further appeal. - Decided in favour of assessee. Lease agreement and buy back entered with the Rajasthan State Electricity Board - Revenue vehemently contended that the machinery was purchased and leased back on the same day without actual payment - tribunal held the lease transaction as financial lease transaction - Held that:- Notice on the impugned judgment, the Tribunal has merely remanded the issue back to the Assessing Officer for reconsideration, after full opportunity to the assessee as AO has not brought anything on record with respect to the treatment given by the assessee to the income received and on the disputed lease transactions. - Decided in favour of assessee for statistical purposes. Disallowance of foreign travelling expenses - AO disallowed the claim as the assessee failed to establish that the expenditure was incurred for the purpose of business - CIT(A) and Tribunal, merely referring to their earlier orders in the case of this very assessee, allowed the claim - Held that:- CIT(A) and Tribunal committed an error in allowing the expenditure without its full verification. Surely, the foreign travelling expenses, if incurred for the purpose of business, would be allowable as the business expenditure. However, the assessee has to establish that the travelling was undertaken for the purpose of business, and, therefore, the expenditure was "business expenditure". Merely because on the basis of the material for the earlier years, the Commissioner (Appeals) and the Tribunal allowed such expenditure would not by itself mean that in the later years also, any expenditure under the same head must be automatically allowed. The assessee owed a duty to establish the basic facts to demonstrate, particularly when called upon by the Assessing Officer that the expenditure was in fact incurred for the purpose of business. The issue must be examined on year-to- year basis on the basis of evidence on record. - Decided in favour of revenue.
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