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2019 (6) TMI 617

..... nt on the conclusion of the negotiation? - HELD THAT:- As decided in assessee's own case [2014 (5) TMI 322 - BOMBAY HIGH COURT] even the provision for pending labour demands and its disallowance made by the Assessing Officer is rightly deleted. The Tribunal has found that the demands were pending. There was wage issue raised by the labour unions and, therefore, in the given facts and circumstances and to maintain industrial harmony and peace, the assessee company made a provision. The revenue may term it as contingent in nature. However, we do not find that the reasons assigned by the Tribunal in that regard raise any substantial question of law. Remission of advance liability - treated as capital receipt - whether the remission of a su .....

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..... d by the Tribunal. Appeal is admitted for consideration of following substantial question of law:- “Whether on the facts and circumstances of the case and in law, the ITAT was right in directing to treat the technical services fee amounting to ₹ 4,92,14,495/- as revenue expenditure without appreciating the fact that the employees cost in respect of employees associated with foreign technician for development of new models is capital expenses and not incurred wholly and exclusively for the purpose of business in existence but relates to development of new model?” - INCOME TAX APPEAL NO. 450 OF 2017 - 10-6-2019 - AKIL KURESHI & S.J. KATHAWALLA, JJ. Mr. Suresh Kumar for the Appellant Mr. Sanjiv M. Shah for the Respondent .....

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..... e ITAT was right in directing to delete the disallowance on account of special pension liability without appreciating the fact that the expenses has not been incurred during the regular course of business and hence, is of the nature which is for bringing in benefit of enduring nature and hence, the Capital expenses? (d) Whether on the facts and circumstances of the case and in law, the ITAT was right in directing to treat the expenses of ₹ 5,02,13,836/- related to setting up of a new foundry as revenue expenditure without appreciating the fact that the expenditure is related to the setting up of a new foundry, activity of which would be different from the activity of the assessee company and hence, cannot be said to be incurred wholly .....

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..... . 997 of 2011. This question is, therefore, not considered. 7. In so far as question No. (d) is concerned, the facts on record would suggest that the assessee had incurred expenditure of ₹ 5.02 Crores for setting up a foundry. As the assessee could not complete the project and abandoned the same, the Revenue s objection to such expenditure was allowed. The Tribunal, however, on facts on the case noted that the assessee was trying to set up a new foundry but the unit was in the nature of expansion of existing business. That being the position, the expenditure was correctly allowed by the Tribunal. 8. Admission of the Appeal is therefore confined to sole question framed earlier. 9. The Registry is directed to communicate copy of this or .....

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