2002 (2) TMI 36

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....n holding in law that the expenditure of Rs. 35,207 incurred for the purchase of T.V. set for the staff was a revenue expenditure? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the expenses of Rs. 1 lakh incurred by the assessee to get extension of mining lease was a revenue expenditure?" The respondent-assessee is a company carrying on the business of manufacturing and trading of processed lumps and powder, etc. During the assessment year 1988-89 in response to a notice under section 143(2) the company produced accounts and other required details. During the scrutiny, it revealed that the assessee-company had paid a sum of Rs. 1 lakh to Dynamic Consultants Pvt. Ltd., t....

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....iness expenditure as it was a routine staff welfare measure and further that the ownership of the asset is vested with the club and not with the assessee. Thus, in view of the finding, the Tribunal accepted the appeal, set aside the orders of the Commissioner of Income-tax (Appeals) as well as the assessing authority with respect to the additions on these two items. The Department filed an application for reference of the questions of law set out therein, but the same was rejected by order dated September 16, 1996. We have heard Mr. L.M. Lodha learned counsel for the Revenue, and Mr. N.M. Ranka, senior advocate, for the assessee. The expression "capital expenditure" is not defined in the Income-tax Act and the words "in the nature of ....