1994 (11) TMI 35

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.... the Revenue, the Tribunal referred the following question under section 256(1) of the Income-tax Act, 1961, for our opinion : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the settling allowance of Rs. 16,000 paid to the employees in connection with the shifting of the factory from Madras to Coimbatore is an admissible deduction ....

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....of Rs. 16,000 incurred by way of settling allowance paid to the employees in connection with the shifting of the factory would amount to capital expenditure. Therefore, the Tribunal was not correct in directing the Assessing Officer to allow this as deduction treating the same as revenue expenditure. In support of this contention, learned standing counsel relied upon a decision of the Supreme Cour....