2003 (1) TMI 92

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....enue, the Income-tax Appellate Tribunal, Delhi Bench-C (for short "the Tribunal"), has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that foreign tour expenditure of Rs. 47,316 was an allowable deduction?" Brie....

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.... said expenditure had been incurred for entering into collaboration for setting up a new unit, namely, a fuel injection unit and, therefore, the same was capital in nature and, further, the expenditure incurred on studying export potentialities was only incidental to the main purpose of the foreign tour and, therefore, was not allowable as revenue expenditure under section 37 of the Act. The asses....

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....ed for extension of the assessee's existing business. Learned counsel would submit that even in the final order passed in the assessee's application under section 254(2) of the Act, the Tribunal has not indicated any reason as to how it has come to the conclusion that the said expenditure was incurred for extension of the existing business. Mr. Aggarwal, learned counsel for the assessee, on the ot....

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....bunal has concluded thus: "We have given consideration to the above arguments. We accept the assessee's contention that the Income-tax Officer was not justified in disallowing Rs. 47,316 out of foreign travelling expenses of the aforesaid S/S Charat Ram and B.K. Ghai on the expenditure incurred on the assessee's business. We accordingly delete addition of Rs. 47,316." It is evident from the ....