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2018 (7) TMI 2307 - HC - Income TaxMaintainability of appeal in HC - substantial question of law - finding of Tribunal that all the companies which have earned profit at less than 6% should be excluded for consideration of comparable companies - HELD THAT:- We do not find any substantial question of law arising in view of the recent judgment of this Court in Pr. Commissioner of Income Tax, Bangalore and Another Vs. M/s. Softbrands India P. Ltd [2018 (6) TMI 1327 - KARNATAKA HIGH COURT] wherein it is held that in these type of cases, unless an ex-facie perversity in the findings of the learned Income Tax Appellate Tribunal is established by the appellant, the appeal at the instance of an assessee or the Revenue under Section 260-A of the Act is not maintainable. Nature of expenditure - payment of compensation paid by the appellant - Revenue or capital expenditure - HELD THAT:- No substantial question of law would arise in this regard to Question No. 2 also because the expenditure paid by the Assessee Company to the other party for withdrawing from the Contract for purchase of Immovable Property i.e. land in question, on which the Appellant Assessee wanted to establish the infrastructural facilities for the business has been rightly held to be a ‘Capital Expenditure’ and the same cannot be said to be a ‘Revenue Expenditure’ incurred in the ordinary course of business.
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