TMI Blog1994 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... cting a factory for the manufacture of dye-stuffs was not a revenue expenditure ? " It appears from the materials on record that the assessee at the material time was a dealer in dyes. The assessee set up a factory for manufacturing dyes at different places. For the installation of the assets certain borrowings were made on which interest had been paid. The Income-tax Officer estimated the interest attributable to borrowings in installation of assets at Rs. 82,283 and disallowed the same treating the payment as of capital nature. Being aggrieved by this, an appeal was preferred before the Commissioner of Income-tax (Appeals) and reliance was placed on the decision of this court in CIT v. R. Tolat and Co. [1980] 126 ITR 551. The Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 8, 1959, and in the application for licence submitted by the assessee to the Government, it was stated that the new unit at Bangalore was nothing but an expansion of the existing business. It was found in that case that there was complete inter-connection, interlacing and inter-dependence of both the units. This test has been laid down by determining whether two lines of business constitute the "same business" within the meaning of section 24(2) by the Supreme Court in the case of CIT v. Prithvi Insurance Co. Ltd. [1967] 63 ITR 632 and again approved by the Supreme Court in the case of Produce Exchange Corporation Ltd. v. CIT [1970] 77 ITR 739. By following the said principle, the Division Bench found the necessary criteria for finding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent place. The facts of each case have got to be appreciated in the proper perspective. Considering the nature of the trading business and considering in depth the business of manufacturing since started by the assessee, the Tribunal has considered the materials on record and found that both the businesses are not the same business and the relief sought for by the assessee will not be available. The finding of fact of the Tribunal appears to be consistent with, the material on record. The same is neither contrary to, nor inconsistent with, the principle of law as found by the Supreme Court and several other High Courts, as discussed above. We do not find anything wrong with the judgment of the Tribunal. We, therefore, answer the question in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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