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TMI Blog2012 (6) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... UDGEMENT Per : M S Sanklecha : This is a reference under Section 256(1) of the Income Tax Act, 1961 at the instance of the Applicant for the Assessment Year 1979-80. 2. The following question has been referred by the Income Tax Appellate Tribunal arising out of its Order dated 17.2.1988 for the opinion of this Court: Whether, on the facts and in the circumstances of the case, the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for that purpose had incurred the aforesaid expenditure in relation to professional fees. The Applicant claimed that the aforesaid expenditure of payment to consultants ought to be allowed as a revenue expenditure as the same was not in respect of a new business but an extension of an existing business and there was complete inter-connection, inter-lacing and inter-dependence between the existin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al expenditure and not revenue expenditure. Therefore the expenditure incurred for the purposes of setting up a new business venture which would entail acquiring assets of enduring nature was in the nature of capital expenditure. 5. However, it is urged by Mr Mistry that the decision of this court in the matters of J.K. Chemicals Ltd. reported in 207 ITR 985 and Trade Wings Limited reported in 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii) Hindustan Aluminium Corporation Ltd. Vs. Commissioner of Income Tax reported in 159 ITR 673 (Calcutta) (iv) Kerala State Industrial Development Corporation Ltd. reported in 182 ITR 62 (Kerala); (v) Seshasayee Bros. Pvt. Ltd. reported in 127 ITR 218 (Madras); (vi) Assam Asbestos Ltd. Reported in 263 ITR 357(Gauhat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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