2013 (10) TMI 1029

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....sessee, challenging the order of the Income-tax Appellate Tribunal made in I. T. A. No. 283 of 2003 dated June 7, 2006-since reported as Kwality Fun Foods and Restaurants P. Ltd. v. Deputy CIT [2007] 295 ITR (AT) 291 (Chennai), confirming the order passed by the Commissioner of Incometax (Appeals), dated December 16, 2002, pertaining to the assessee for the assessment year 1998-99. This tax case (....

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....ibunal was right in law in holding that the amount advanced was incurred towards the cost of acquiring the profit earning apparatus and, hence, not allowable as revenue loss ?" During the course of arguments, the learned counsel appearing for the assessee submitted that he is not pressing the first issue and he is advancing the arguments only with regard to substantial questions of law 2 and 3 ....

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....essee filed an appeal against the order of assessment and the Commissioner of Income-tax (Appeals) dismissed the appeal by holding that the advance made to the contractor was for the purpose of securing an enduring benefit in the form of cold storage system and, therefore, the advance made was to acquire assets of capital nature. The assessee preferred a second appeal before the Income-tax Appe....

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....ed counsel appearing for the Revenue on the other hand relied on the judgment of the hon'ble Supreme Court reported in Hasimara Industries Ltd. v. CIT [1998] 231 ITR 842 (SC) and contended that a similar issue was already considered in the said decision and the Supreme Court answered the point against the assessee. The learned counsel for the assessee was neither able to distinguish the said decis....