2013 (10) TMI 429

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.... Revenue under Section 260A of the Income Tax Act, 1961 (Act, for short), relates to Assessment Year 1995-96 in the case of 'Enpro India Ltd'. 2. By order dated 03.10.2001, the following substantial question of law was admitted for adjudication:-    "Whether the Tribunal was justified in holding that the sum of Rs.1.5 lakhs paid for preparation of project report was revenue expendi....

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....er was itself an asset of capital nature. 5. Tribunal has reversed this finding, inter-alia, recording that the respondent/assessee was already in business and was an ongoing concern. They were examining feasibility of purchasing a bulk carrier in order to run their existing business efficiently and smoothly as ongoing business. The assessee was in the business of international trading of ferti....

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....cilitating the assessee's existing trading operations or enabling management and for conduct of assessee's business more efficiently or profitably. If the answer is yes, the expenditure is revenue, otherwise expenditure is capital. It is only when project reports have been accepted and successfully implemented, the assessee goes into production of a new product. This cannot, therefore, be the sole....