TMI Blog2002 (2) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of law arises from the order of the Tribunal. - Consequently, the reference application is rejected. - - - - - Dated:- 22-2-2002 - Judge(s) : N. N. MATHUR., D. N. JOSHI. JUDGMENT The judgment of the court was delivered by N.N. MATHUR J.-This reference application at the instance of the Revenue under section 256(2) of the Income-tax Act, 1961, has been filed seeking direction against the Income-tax Appellate Tribunal, Jaipur, for referring the following questions of law for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding in law that the expenditure of Rs. 35,207 incurred for the purchase of T.V. set for the staff was a revenue expenditure? 2. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax (Appeals) with regard to the different additions made by the Assessing Officer. The Commissioner of Income-tax (Appeals) rejected the appeal. In second appeal, the Tribunal after discussing the case law relied upon by the Revenue as well as by the assessee in detail concluded that the payment of Rs. 1 lakh to the consultant for the renewal of the mining lease was to facilitate the existing mining lease and as such no fresh lease was being acquired. Thus, the payment made was not of capital expenditure. Similarly, with respect to expenditure on T.V. the Tribunal found that it was a legitimate business expenditure as it was a routine staff welfare measure and further that the ownership of the asset is vested with the club and not with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under peculiar and distinct circumstances. Thus, whether a particular item of expenditure constitutes revenue or capital disbursement is to be determined on the facts of each case. In the instant case, the assessee purchased a T.V. set for Rs. 35,000 and gave it to the recreation club of the workers. In our opinion to provide a T. V. set to the recreation club of the workers is a routine staff welfare measure and hence a legitimate business expenditure. It is also not in dispute that the T.V. set has been given to the recreation club permanently. Thus, the ownership of the T.V. does not rest with the assessee. As regards the payment of fees of Rs. 1 lakh to Dynamic Consultants Pvt. Ltd. for the renewal of the mining lease, it is to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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