2014 (5) TMI 626

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....me Tax Act, 1961 and should not be treated as incurred for creating a capital asset? (ii) Whether the Income Tax Appellate Tribunal was correct in holding that the expenditure of Rs.57,32,689/- incurred on 'CNBC Expansion Project' was allowable as revenue expenditure and not as capital expenditure? (arising out of the assessment year 1998-99) As far as the first question i.e. whether the expenditure towards creation of the news archives is concerned, the issue is covered by the decision of this Court in ITA 1624/2006 decided on 29.04.2014. Accordingly, this question is answered in favour of the assessee and against the Revenue. So far as the second issue i.e. the expenditure towards the 'CNBC Expansion Project' is c....

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....nt given to the expenditure in the books of account is not conclusive in the matter. The expenditure has to be allowed on the basis of incurring the expenditure and even if the same is not debited in the books, necessary correction has to be made while computing the income as held in the case of Kedarnath Jute Manufacturing, Company, Ltd. (Supra). The last issue is whether the expenditure was in the capital field or in the revenue field. The expenditure was incurred with a view to expand one and a half hours programme to 12 hours a day programme. It was in the existing line of business of the assesee. There is nothing on record to show that the finances for this programme were separately arranged or that control and management for this p....