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TMI Blog2019 (7) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... upte, J.) This Income Tax Appeal challenges an order passed by the Income Tax Appellate Tribunal, Panaji Bench, Panaji. The sole issue involved is whether the amount of Rs.76,65,000/- (Rupees seventy six lakhs sixty five thousand only) paid as consultancy fees by the respondent Assessee to M/s. ICICI Ltd. was a capital expenditure and not a revenue expenditure. 2. It is the case of the Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided by ICICI Ltd., the ITO found that the expenditure was for restructuring of capital. The ITO held that nowhere in the letter it was specified that the payment of fees for advisory services was for loan restructuring of the Assessee. In the absence of any material evidence, the payment of Rs.76,65,000/- (Rupees seventy six lakhs sixty five thousand only) was disallowed by the ITO as revenue ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s twenty five crores) with effect from 16/09/2001. 4. When the matter was carried by the Department before the ITAT, the ITAT observed that the departmental representative could not point out any specific error in the order of the CIT (Appeals). The Tribunal held that no material was brought before them to show that the advisory fees had helped the Assessee to increase its capital base. The ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), in support of the present appeal has no merit. In Brooke Bond India Ltd. (supra), the expenditure was incurred as part of an exercise for issue of ordinary shares with a view to increase the Assessee's share capital. The Court relied on its observations in the case of Punjab State Industrial Development Corporation Ltd. (supra). In that case, fees were paid to the Registrar for expansion of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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