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2016 (6) TMI 531 - ITAT MUMBAIAllowance of consultancy and advisory services - non setting up of business - Held that:- In the instant case under appeal, the project for manufacturing and supplying of locomotives has not yet been set up , while only preparatory steps are taken by the assessee company by bidding for award of the contract by Rites Limited , Ministry of Railways in favour of the consortium partners which included assessee company also for setting up manufacturing facility at Marhowra, Bihar for manufacture and supply of locomotives to Indian Railways whereby bid documents has been filed with Rites Limited , Ministry of Railways and these expenses of ₹ 1,35,74,240/- paid to BMR on consultancy and advisory services in connection with this Indian Railway project are merely preparatory expenses incurred by the assessee company prior to setting up of business and hence cannot be allowed as revenue expenditure in the hands of the assessee company. Looking into all these facts and circumstances of the case we find no infirmity in the order of the ld. CIT(A) and we uphold and sustain the same for the reasons as indicated above. We order accordingly. - Decided against assessee
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