2010 (12) TMI 735

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....enue.   Mr. S.K. Mukhi, Advocate for the respondent-assessee.   AJAY KUMAR MITTAL, J.   This appeal under Section 260A of the Income-tax Act, 1961 (for short "the Act'") has been filed by the Revenue against the order dated 3.5.2005, passed by the Income Tax Appellate Tribunal, Delhi Bench 'SMC' New Delhi, (in short "the Tribunal") in ITA No. 3706/DEL/2004, relating to the ....

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....y the assessing officer, the assessee explained that the development charges of Rs. 9,20,000/- comprised of raw material, foundry chemicals, labour charges, fuel etc.. Finding the explanation not satisfactory, the expenditure of Rs. 9,20,000/- was treated as capital expenditure and deduction of that amount was disallowed. The assessing officer disallowed certain other deductions also, which are no....

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....nd samples of the vehicles, was admissible as revenue expenses?   The Tribunal, after examining the matter, recorded as under: "After considering the rival submissions, I find that assessee deserves to succeed on this ground. There is no dispute that the expenses were incurred and the payments were made by the assessee company. The expenses were incurred on castings, labour and electricity....

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....are allowable as revenue in nature. In view of all these facts and circumstances, I direct the AO to treat these expenses as revenue in nature and allow the same."   A categorical finding has been recorded that samples were prepared for getting orders from various companies, like, Mahindera and Mahindera, Bolero, Scorpio and Tata Indica. The assessee had sent the samples for approval and a....