2008 (6) TMI 616

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....umstances of the case, the Tribunal was right in law in deleting the addition in respect of payments made to M/s. McKinsey & Co., management consultant and the same should be allowed as revenue expenditure is valid in law? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the addition made towards interest paid on borrowed capital is valid?" 2. The facts of the case are as follows : The assessee is a company engaged in the manufacture and sale of industrial ceramics. The assessee, for the relevant assessment years, had claimed a sum of Rs. 75 lakhs being fees paid to M/s. McKinsey & Co., management consultants. The claim was made on the ground that the said amount was paid towards p....

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.... is revenue in nature. Against that finding, the assessee preferred an appeal before the CIT(A) and the CIT(A) sustained the order of the Assessing Officer. Against that order the assessee preferred an appeal before the Tribunal and the Tribunal following the decision of this Court in the case of same assessee in CIT v. Carborandum Universal Ltd. [2006] 205 CTR (Mad.) 498 set aside the order of the CIT(A) and deleted the additions and allowed the assessee's appeal. Aggrieved by the said order, the appellant has preferred this appeal. 4. Heard the learned counsel on either side and perused the materials available on record. 5. It is well-settled that it is not only permissible, but is also necessary for any business to update its own knowl....