TMI Blog1986 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... on 256(1) of the Income-tax Act, 1961 (hereinafter called "the Act"), the Income-tax Appellate Tribunal, Bangalore Bench, Bangalore ("the Tribunal"), at the instance of the Revenue, has referred the following question of law for the assessment years 1970-71 to 1973-74 of one and the same assessee. "Whether, on the facts and circumstances of the case, the Tribunal is right in law in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d feasibility studies as "revenue expenditure" before the Income-tax Officer, Company Circle, Bangalore, who disallowed the same and held that it was "capital expenditure". On appeals filed by the assessee, the Appellate Assistant Commissioner of Income-tax, Bangalore, allowed them and held that it was "revenue expenditure" with which the Tribunal has concurred with a direction to the Income-tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rently found that the expenditure incurred by the assessee, with due regard to the nature of business, was revenue expenditure. We are of the view that in reaching its conclusions, the Tribunal had not misapplied the legal principles. We see no merit, in the contention of Sri Srinivasan that the expenditure incurred was not revenue expenditure but was capital expenditure. From this, it follows tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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