1996 (9) TMI 49

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.... M. N. RAO J.--At the instance of the Revenue, this court has called for a statement of case on the following question under section 256(2) of the Income-tax Act, 1961, from the Income-tax Tribunal : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in treating the expenditure of Rs. 1,37,050 incurred towards stamp duty for renewal of mining leas....

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....turing cement and calcium carbide and that the expenditure was normal business expenditure and that the assessee had not acquired any capital asset. Mr. J. V. Prasad, learned counsel for the Revenue, contends that because of the acquisition of the mining lease, the assessee is able to carry on the business and, therefore, it amounted to acquisition of a new asset and accordingly the stamp duty ....

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....character, the possession of which is a condition of the carrying on of the business, the expenditure may be regarded as revenue expenditure, " fully applies to the case on hand. Further a circular dated June 23, 1943, in No. 22 (R. Disc. No. 27(53)-I.T./43), is also brought to our notice by learned counsel for the assessee Mr. Kodandaram. The circular reads as follows : " Legal expenses inc....