TMI Blog2002 (5) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... s revenue expenditure in nature and allowable as deduction." 3. Assessee wanted to go in for a public issue and incurred inter alia the following expenditure- "Details of Public Issue Promotion Expenses ------------------------------------------------------------------------------------- S. No. Date Amount Particulars of Payment ------------------------------------------------------------------------------------- 1. 20-1-1995 5,000.00 Cheque No. 093370 paid for Advance for lawn booking for public issue meeting 2. 7-2-1995 18,000.00 Cheque No. 093381 paid and bill settled 3. 25-3-1995 7,190.00 Travelling Bill of Vidharbha Holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 90 was of the nature of abortive expenditure. Assessee claimed it as revenue expenditure, or in the alternative as allowable under section 35D of the Act. 6. Before us, the learned counsel for the assessee has conceded the position that the assessee was not eligible for deduction under the provisions of section 35 and so, he has not pressed the grounds taken before us on that aspect. He conceded the position that the amount has to be allowed as revenue expenditure or disallowed as capital expenditure. He contended that it was allowable as revenue expenditure not withstanding the decision of the Apex Court in the case of Brooke Bond India Ltd. v. CIT [1997] 225 ITR 798 because in that decision, the Apex Court was considering the expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be a capital expenditure. He submitted that the character of an expenditure does not change depending upon whether the anticipated result of such expenditure has been achieved or not. 8. We are in agreement with the pleas taken by the learned Departmental Representative. We find support for our views in this behalf, from the following remarks of the learned Author, Sampath Iyengar in law of Income-tax (9th Edition), 2nd Volume pp. 2610-2611. " 98. Object of expenditure alone counts.-- It should be remembered that in Viscount Case's speech the emphasis was that the expenditure would be attributable to capital if it is made with a view to bringing an asset or advantage into existence. It is not necessary therefore that the expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
