2011 (6) TMI 6

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.... (PER J.P. DEVEDHAR, J.)   1. The question of law raised in this appeal by the revenue reads thus:-   " Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in allowing the claim of the assessee company of Rs.45,21,000/- as revenue expenditure being one time payment made to Mahanagar Gas Ltd. by the assessee company towards CNG connection....

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....ulating station and that the payment was made before the commencement of gas supply and, therefore, the expenditure being capital in nature cannot be allowed as revenue expenditure.   3. The CIT(A), however, allowed the asssessee's appeal on the ground that the expenditure was incurred as an integral part of the profit earning process and not for acquisition of an asset of a permanent char....

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..... Excel Industries Ltd. reported in [1980] 122 I.T.R. 995 (Bom), which is also affirmed by the Apex Court.   5. It is contended by the counsel for the revenue that the payments made by the assessee to Mahanagar Gas Ltd. were in respect of assets which were intended to give enduring benefit to the assessee. As held by the Apex Court in the case of Empire Jute Co. (supra) an expenditure even....