1999 (2) TMI 33

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....evenue, the following question has been referred to us: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee had commenced its business in India from April 13, 1981, when it secured and accepted the letter of intent from Neyveli Lignite Corporation and not from October 1, 1981, when it opened its site office at Neyveli....

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....was not doubted. The Tribunal, disagreeing with the Commissioner of Income-tax, allowed the assessee's claim. While doing so, it set out its conclusion thus: "On the above facts, it has, to be held that the appellant-company has commenced its business activities in India on April 13, 1981, when it secured the letter of intent from Neyveli Lignite Corporation. The requirements of permission f....

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....aratory to mobilisation of erection establishment is also one of the conditions to be fulfilled by the appellant-company as per clause 7.8 of the contract for receiving 10 per cent. of the total erection price as advance." It is clear from this finding of the Tribunal that the assessee had in fact commenced operations on April 13, 1981, and incurred expenditure and the expenditure so incurred w....