2014 (12) TMI 59

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.... the Respondent : Mr. M. P. Rastogi and Mr. K. N. Ahuja, Advocates. ORDER Sanjiv Khanna, J. (Oral) This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (Act, for short) pertains to assessment year 1994-95 and was admitted for hearing by order dated 10th May, 2005, on the following substantial question of law:- "Whether the Income Tax Appellate Tribunal was justifie....

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.... the Act excluded the said amount on the ground that it was not a part of industrial activities and, therefore, should be excluded. The aforesaid reasoning was affirmed in the first appellate order passed by the Commissioner of Income Tax (Appeals). However, in the second appeal before the Income Tax Appellate Tribunal, the plea of the assessee was accepted. 3. The Tribunal has rightly and corr....

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....fore, include the expenditure incurred for the business of M/s. Interarch and was reimbursed to the assessee. The fact that the expenditure related to and was payable by M/s. Interarch is not under challenge. It is not the case of the revenue that the amount paid, exceeded or was more than the expenditure actually incurred by M/s. Interarch and had the effect of reducing the expenditure incurred b....