TMI Blog2008 (3) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ded to be being paid towards consideration for transfer of title, or property of the undertaking of the company. The expenses was deductible. - 22 of 2003 - - - Dated:- 4-3-2008 - GUPTA N. P., DEO NARAYAN THANVI JJ. K.K. Bissa for the appellant. Anjay Kothari for the respondent. JUDGMENT 1. This appeal has been filed by the Revenue against the order of the learned Tribunal dated April 24, 2002. The appeal was admitted on Feb-rurary 27, 2003, without framing any substantial question of law. Then, vide order dated November 14, 2005, the substantial question of law was framed as under : "Whether on the facts and in the circumstances of the case the Tribunal is right in law particularly keeping in view t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 320.79 lakhs for acquisition of the undertaking and the details were worked out as under : 1. For the deprivation of the management of Metal Corporation of India from October 22, 1965, to August 2, 1976, at Rs. 11.39 lakhs per annum. 2. For the acquisition of the undertaking of Metal Corporation of India at Rs. 198 lakhs. 4. It is not in dispute that from October 22, 1965, itself, the Metal Corporation of India was deprived of its management. The question came up as to whether the aforesaid expenditure is allowable as revenue expenditure and shall be considered as revenue expenditure or capital expenditure and the learned Commissioner of Income-tax treated the entire amount as capital expenditure. Then, in appeal, the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king and earn any income therefrom. As it appears that this factor which has been taken into consideration and it appears to be agreed that Metal Corporation of India would have earned profits at Rs. 11.39 lakhs per annum had it not been deprived of possession therefore, at this stage it was directed to be compensated for the period during which it stood deprived of possession and management. 6. We may visualize the situation that if the acquisition would not have gone through or would have ultimately failed even then Metal Corporation of India would have been entitled to compensation for the deprivation, obviously, in which event the amount would not have been capable of being described as capital expenditure. Obviously, therefore, if th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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