1996 (9) TMI 189

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.... opinion. Since the two applications arise out of the common order of the Tribunal they are being disposed of by a consolidated order for the sake of convenience. Asst. yr. 1988-89: (i) Whether, on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in holding in law that the expenditure of Rs. 35,207 incurred for the purchase of T.V. set for the staff was a revenue e....

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....s. 35,207 and gave it away to the club. The assessee claimed it as a revenue expenditure. The AO rejected this claim and treating the same as capital expenditure, allowed depreciation thereon. The CIT(A) confirmed the disallowance. 3. The Tribunal allowed the claim of the assessee on two grounds, one, as it was a routine staff welfare measure and, hence, a legitimate business expenditure, and two....

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.... the services of M/s Dynamic Consultants (P) Ltd. who provided necessary assistance to prepare the renewal application and attended to the matters pertaining to the renewal of lease. M/s Dynamic Consultants were paid consultancy fees of Rs. 1,00,000 for the services rendered. In the opinion of the AO, by renewing the lease, the assessee was acquiring benefit of an enduring nature and hence treated....

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....being acquired afresh. Hence, the Tribunal respectfully applied the principles laid down by the superior Courts on the facts of the case. 7. In our opinion, therefore, no referable question of law arises and, accordingly, the application No. RA 293/Jp/1995 for asst. yr. 1988-89 is dismissed. 8. The assessee replaced electric motors worth Rs. 82,534 in some of its machineries and claimed the same....