TMI Blog1977 (8) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... s : " Whether, on the facts and in the circumstances of the case, the payment made to Mr. Jeen Roy, or any part of it, could be treated as capital in nature ?" The assessee is a private limited company established for the production of wines. The assessee appointed one Mr. Jeen Roy of France, for rendering necessary help in setting up a modern and up to date plant for the manufacture of wines. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the said items would come as revenue expenditure, and not as capital expenditure. Hence, this reference at the instance of the department. It is the contention of the department, that, by means of the expenditure incurred, the assessee got an advantage of an enduring nature and, therefore, it is a capital expenditure. The expenditure incurred by the assessee was on account of salary paid to M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was any business transaction. But, as regards the amount incurred subsequent to April 3, 1968, on which date the production and business of the assessee started, there is no clear evidence that by incurring that expenditure on Mr. Roy, the assessee got an advantage of an enduring nature. It is, therefore, not possible to say that the said expenditure is not revenue in nature but capital in natur ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
