TaxTMI 
TaxTMI 
2015 (1) TMI 101
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....1.1996 where the total income declared was nil. However, there was a notice issued under Section 143(2) of the Income Tax Act. It is an admitted position that the appellant - assessee is a Public Limited Company manufacturing ice cream and other food products. There was a total turnover of Rs. 52,27,22,000/- and the profit disclosed is Rs. 13,71,53,000/-; hence, the profit disclosed came to 26.22% against 22.56%. Therefore, the assessee claimed pre-operative expenditure for expansion of its Dharampur plant. 3. The assessee vide their note claimed that in view of the fact that expansion and existing business are inter linked, inter connected, inter dependent in respect of business operations, management (units of control) and finance, the e....
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....een incurred on consultancy charges, retainership, etc. The expenditure of Rs. 11,02,743/- for raising of loans from the financial institutions, Banks, interest expenditure and bank guarantee. The other Expenses are of a revenue nature relating to personnel working in the PF for doing the work of raising of loan and necessary follow upwork with the financial institutions and banks. In books of accounts the same has been considered as a pre-operative expenditure pending capitalisation to the assets. However, in income tax return the same has been considered as a revenue expenditure in view of the fact that expansion and the existing business are interlinked, interconnected, inter-dependent, inter-lacing in respect of business operations, m....
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....e business or profession, the following deductions shall, subject to the provisions of section 34, be allowed - (i) [omitted]; (ii) in the case of any block of assets, such percentage on the written down value thereof as may be prescribed : Provided that where the actual cost of any machinery or plant does not exceed five thousand rupees, the actual thereof shall be allowed as a deduction in respect of the previous year in which such machinery or plant is first put to use by the assessee for the purposes of his business or profession." 10. Section 50 of the Income Tax Act reads as under :- "6[Special provision for computation of capital gains in case of depreciable asse....
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....the assessee during the previous year and the income received or accruing a result of such transfer or transfers shall be deemed to be the capital gains arising from the transfer of shortterm capital assets.]" 11. Learned Senior Counsel Mr. S.N. Soparkar for the appellant has placed reliance on the decision of the Apex Court in the case of Nectar Beverages P. Ltd. vs. Deputy Commissioner of Income-Tax reported in (2009) 314 Income Tax Reports 314 (SC). 12. It is further submitted that the said decision will enure for the benefit of the assessee and the issue is covered against the revenue. He has taken us to Paragraph 12 of the said decision which reads as under :- &....