2002 (9) TMI 38

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..... d at the instance of the Revenue are : "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal having held that the expenses on management fees and lease rent were incurred before the commencement of production was right in directing the Assessing Officer to allow the expenditure on a spread over basis on the same lines as in section 35D? (2) Whether, on the facts .....

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..... agement agreement with Dugar Investments, who paid the balance payable to the suppliers, reimbursed the assessee the amount that it had paid in part to the suppliers, acquired ownership of the machineries and leased the machineries back to the assessee. There was a time gap between that lease back and the commencement of production during which period the assessee paid the lease rent and managemen .....

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..... could not be treated as revenue expenditure and that such expenditure was also not covered by section 35D of the Act, nevertheless proceeded to grant relief by holding that by analogy the expenditure incurred by the asses see on the lease rental and management fee prior to the date of commencement of production was in the nature of a preliminary expense and, therefore, should be allowed to be amo .....

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