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2009 (8) TMI 16

..... M/s Honda Motor Cycles for which the assessee is a promoter and is separate identity under the head of Hero Honda Ltd. and came into existence afterwards – revenue submitted that since it is a new venture and expenditure being of capital nature, that of promoter, cannot be allowed as revenue expenditure – held that - finding of the Tribunal shows that the expenses had been incurred in the course o .....

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..... tion of Rs.4,40,183/- out of travelling expenses, Rs. 1,10,804/-out of salary and Rs.53,543/- out of research and development expenses claimed by the assessee pertaining to M/s Honda Motor Cycles for which the assessee is a promoter and is separate identity under the head of Hero Honda Ltd. and came into existence afterwards. 2. The Assessing Officer made additions referred to in the question, whi .....

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..... romotion 20,311 (iii) Research and Development 51,994 (iv) Establishment - salary paid to Sh. Amit Chaturvedi 25,935 (v) Rent 16,500 The company manufactured Mopeds. In order to expand its business, it entered into negotiations with Honda Motors Co. Ltd., Japan, who desired that the assessee should first stop production of Mopeds. The company was very much interested in getting the latest technica .....

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..... existing business, all expenses are allowable and ld. Lower authorities were not justified in making and confirming the additions. Ld. D.R., on the other hand, relied on the orders of the lower authorities and submitted that since it is a new venture and expenditure being of capital nature, that of promoter, cannot be allowed as revenue expenditure. She submitted that theses expenses being of oth .....

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..... facts and circumstances of the case, we are of the view that the expenses mentioned in grounds Nos. 6 to 8 are allowable as of revenue nature. We hold accordingly. Grounds thus succeed. 3. We have heard learned counsel for the parties. 4. A reference to the finding of the Tribunal shows that the expenses had been incurred in the course of the business of the assessee with a view to get latest tec .....

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