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TMI Blog2006 (2) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... business expenditure? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the fees paid to the Registrar of Companies for increasing the share capital of the company is capital expenditure and, therefore, not allowable under section 37(1) of the Income-tax Act, 1961? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the prospectus report fee of Rs. 3,000 for new issue of shares is capital expenditure and, therefore, not allowable under section 37(1) of the Income-tax Act, 1961? 4. Whether, on the facts and in the circumstances of the case, the amalgamation expenses of Rs. 22,500 and liquidation expenses of winding up of Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and against the Revenue in the light of the ratio laid down by the apex court judgment in the case of CIT v. Bombay Dyeing and Manufacturing Co. Ltd. [1996] 219 ITR 521. In so far as the question arising out of the cross-objections filed by the assessee is concerned, the same is in two parts. The first part is whether the Tribunal was right in law in not condoning the delay in submission of the cross-objections and the second part is whether the Tribunal was right in holding that the ground raised in the cross-objections cannot be raised for the first time before the Tribunal in the cross-objections in respect of a point which was admittedly not the subject matter of the assessment order nor was it the subject matter of appeal decided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided to take this additional ground. In the premises aforesaid, the assessee most humbly prays that the delay in filing the cross-objection be kindly condoned. The assessee also submitted an affidavit dated January 6, 1994, explaining the delay in submission of the cross-objection. It has been mentioned therein that the cross-objection has been submitted on the basis of a subsequent decision of the hon'ble Supreme Court in the case of Saraswati Industrial Syndicate Ltd. reported in [1990] 186 ITR 278. Since this judgment was delivered on September 4,1990 and came to be reported in the last volume of 1990, being 186 ITR, the suggestion of filing such a cross-objection came from Shri J.P. Shah, advocate and ultimately it was filed on Dece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner (Appeals) the assessee had not raised the said issue. As can be seen from the facts of the case by virtue of a scheme of amalgamation sanctioned by this court on August 7, 1986 M/s. Starlight Silk Mills P. Ltd. amalgamated with the assessee-company. It appears that the said company had paid customs duty to the extent of Rs. 38,05,368 and claimed deduction under section 43B of the Act while including the same in the purchase price and thereafter in the closing stock. The assessee had added back the same in its return of income as disallowable under section 43B of the Act. The facts are not clear as to how the same was disallowable under section 43B of the Act in the hands of the assessee. However, what is more materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, but there is nothing on record to show that the assessee has in any manner received any amount in respect of such expenditure in cash or in any other manner whatsoever; nor is it shown that any benefit in respect of such customs duty by way of remission or cessation thereof has been received by the assessee. Therefore, the assessee cannot seek to support its case for condonation of delay on the basis of the Supreme Court decision in the case of Saraswati Industrial Syndicate Ltd. [1990] 186 ITR 278, as, prima facie, the assessee failed to point out, in any manner whatsoever, as to how section 41(1) of the Act is applicable, and that in fact the said provision has been invoked and applied in the case of the assessee. Therefore, in the abs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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