TMI Blog2019 (7) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure - no question of law arises - the appeal of revenue is dismissed. - TAX APPEAL NO.2 OF 2019 - - - Dated:- 25-6-2019 - S. C. GUPTE NUTAN D. SARDESSAI, JJ. Ms. Susan Linhares, Standing Counsel for the Appellant. Mr. R.G. Ramani, Advocate for the Respondent. ORAL ORDER : (Per S.C. Gupte, 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 ₹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 Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept the revenue's case. The CIT (Appeals) held that the Assessing Officer had not mentioned anywhere in the assessment order as to how the advice taken by the Assessee, for which it had made payment to ICICI Ltd., had helped in increasing the capital base or share capital of the Assessee. The CIT (Appeals) held that on the other hand, the Appellant Assessee had given satisfactory explanation as to how the payment had helped in reduction of interest liability from 15.75% to 13% on a loan of ₹25,00,00,000/- (Rupees 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough it would help the business of the company as also its profit making, it still retained the character of a capital expenditure, since it was directly related to expansion of the capital base of the company. The Court in Brooke Bond India Ltd. (supra), held that the decision in Punjab State Industrial Development Corporation Ltd. (supra), directly covered the question that fell for consideration of Supreme Court. 6. These observations have no bearing on the facts of the present case. In the present case, the Tribunal has come to a conclusion, as a matter of fact, that the expenditure incurred by the Assessee in payment of fees to ICICI Ltd. had nothing to do with the expansion of the capital base of the company and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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