2015 (8) TMI 134

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.... A.K. Jasani for the Respondent ORDER 1. In this appeal by the revenue for the assessment year 2004-05, the following questions of law have been raised for our consideration:- "A. Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that expenses incurred in obtaining club membership is revenue in nature as held by the assessing off....

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....t bad debts written off is allowable even though the assessee failed to produce evidence from which it could be inferred that the said debts had become bad?" 2. So far as question A is concerned, the dispute relates to payment of entrance fees for club memberships. The case of the revenue is that the entrance fees is of capital nature while the respondent contends that it is revenue and should ....

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.... the matter of Otis Elevator Co. (India) Ltd. (supra) and allowed entrance fees of club as revenue expenditure. Further, this Court has also in numerous matters applied the decision of Otis Elevator Co. (India) Ltd. (supra) to the cases were entrance fees of club membership was an issue in dispute and held that the same is allowable as revenue expenditure. In view of the above, we do not entertain....

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....o entertain question B as framed by the revenue. 4. So far as question C is concerned, the dispute is, whether the compensation paid by the respondent for pre-closure of the agreement to receive nitrogen gas from one M/s. INOX would be allowable as revenue expenditure or be capitalised as a part of the respondent's nitrogen gas plant. The Tribunal has held that the contract was terminated b....