TMI Blog1992 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961, at the instance of the Revenue. The question referred to this court is as under : " Whether, on the facts and in the circumstances of the case, the income-tax Appellate Tribunal was justified in law in holding that Rs. 20,131 being expenses of revenue nature incurred after June 9, 1973 (the date on which the first raw materials were purchased) is allowable as revenue expenditure?" T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curred after June 9, 1973, and before November 23, 1973, were deductible revenue expenditure and that the expenses incurred by the assessee before June 9, 1973, did not qualify for deduction. Accordingly, the appeal was partly allowed. The Revenue was not satisfied with that order and, therefore, it moved the Tribunal for referring the above-stated question to this court. What is contended by le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peciality Paper Ltd. [1982] 133 ITR 879 (Guj) and Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377 (SC). The facts are very few in this case and there is no dispute regarding the fact that the first raw materials were purchased on June 9, 1973, and production started on November 23, 1973. There is also no dispute on the point that, if the assessee-company can be said to have commenced i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding of fact, viz., that the assessee had commenced business on June 9, 1973, necessarily followed. As pointed out by this court in the case of Saurashtra Cement [1973] 91 ITR 170, in such matters, a common sense approach has to be adopted in order to find out whether the assessee can be said to have commenced business. The assessee would not have purchased raw materials and blocked his monies un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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