TaxTMI 
TaxTMI 
2019 (2) TMI 320
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....s on Build, Operate and Transport (BOT) basis in the Vaizag Port, can be allowed as a revenue expenditure, as permitted by the Income Tax Appellate Tribunal, especially when the assessee was venturing into a new line of business?" 2. The facts indicate that the assessee had a Transport Division at Chennai which showed a sundry expenses of Rs. 41,54,531/-. On calling for a break up, it was revealed that Rs. 16,26,731/- was captioned as Vaizag Berth consultation. The explanation with respect to such expense was that Government of India had called for tenders for construction, equipping, operation and maintenance of two multi purpose berths on BOT basis for the Vaizag Port. The asssessee had obtained bid documents and engaged a consultant fo....
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....ture, if any, caused in such business cannot be set off against the profits of other businesses, is the contention. 5. The learned counsel appearing for the respondent places reliance on the judgment of the Honourable Supreme Court reported in (1989) 177 ITR 377 (SC) [Alembic Chemical Works Co. Ltd. v. Commissioner of Income-Tax] to support the contention that the assessee was engaged in related activities and had merely attempted an expansion of its activities, which resulted in the expenditure. The venture though not new, did not take off since the Government of India abandoned the project. It is also specifically argued that no question of law arises, since the issue of a related business has been dealt with by the Tribunal and held on ....