2008 (3) TMI 433

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....iew the legislative history of nationalization, first acquisition and later nationalization of M/s.  Metal Corporation of India Ltd. and consequently appointing the assessee as administrator, that the amount of Rs. 122.79 lakhs paid to M/s.  Metal Corporation of India for the period January 10, 1966, to August 1, 1966, and further amount required to be paid on August 2, 1976, to the said M/s.  Metal Corporation of India is a revenue expenditure allowable under section 43(3) of the Income-tax Act ?" 2. Thus, the only question which requires to be gone into by us is as to whether the amount of Rs. 122.79 lakhs paid to M/s.  Metal Corporation of India for the period January 10, 1966, to August 1, 1966, and further amount r....

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....penditure. Then, in appeal, the learned Income-tax Appellate Tribunal found that out of the amount of Rs. 320.79 lakhs, the amount of Rs. 198 lakhs was obviously a capital expenditure but then another sum of Rs. 122.79 lakhs being deprivation charges at Rs. 11.39 lakhs per annum was in the nature of revenue expenditure as the assessee had taken over the business and management of Metal Corporation of India during the period of litigation before the final acquisition. This finding, which is under challenge, is comprised of the substantial question of law as framed. 5. We have heard learned counsel for the parties and examined the material available. In our view, from the calculation of the compensation, as broken up, it is clear that Rs. 19....