TaxTMI 
TaxTMI 
2010 (5) TMI 831
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Years 1996-97, 1997-98 and 1998-99 respectively: TAX APPEAL No.553 of 2009 "Whether, on the facts and circumstances of the case, the Appellate Tribunal was right in law allowing the interest/expenditure of Rs. 140.70 lacs as revenue expenditure incurred for new unit which was a separate unit from existing unit and this new unit had not started production?" TAX APPEAL No.554 of 2009 "Whether, on the facts and circumstances of the case, the Appellate Tribunal was right in law allowing the interest/expenditure of Rs. 140.70 lacs as revenue expenditure incurred for new unit which was a separate unit from existing unit and this new unit had not started production?" TAX APPEAL No.555 of 2009 "Whether, on the facts and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Tribunal, but failed. (4) Learned Senior Standing Counsel for the appellant has assailed the impugned order of the Tribunal and has supported the order made by the Assessing Officer. (5) A perusal of the order made by Commissioner (Appeals) indicates that Commissioner (Appeals) has found that in the facts of the present case the respondent assessee was setting up the new unit for manufacturing the same product which it was already manufacturing and the control of the new unit was under common management in the same business organization. The registered office of both the units was the same and the fund for the two units was substantially common. He, accordingly, held that the process of setting up of the alleged new unit was nothing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vidual items of the various expenditure as they are revenue expenditure or capital expenditure. Hence, he restored the issue back to the file of the A O with a direction to allow revenue expenditure. We find that the Revenue could not controvert the findings of the CIT (A) to the effect that the new unit which is being set up by the assessee was the same line of business in which the assessee was already engaged. Thus, we find no error in the decision of the CIT (A) that the setting up of the new unit is in expansion of the already existing business in the hands of the assessee and hence, of the revenue expenditure incurred during the course of carrying of the business is allowable as per the provision of law. We thus, do not find any good....