1993 (11) TMI 41

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....re two connected applications under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), filed at the instance of the Commissioner of Income-tax, Allahabad. Income-tax Application No. 272 of 1991 is in respect of the assessment year 1968-69 in which the following three questions have been proposed : '(1) Whether, on the facts and in the circumstances of the case, t....

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....etting up of plant and machinery was revenue expenditure ?" The other application, i.e., Income-tax Application No. 273 of 1991, is in respect of the assessment year 1969-70 in which the following two questions have been proposed: "(I) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that in reassessment proceedings the Assessing Officer....

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....erns the assessment year 1968-69 only. The figure of Rs. 1,93,581 referred in the question is an aggregate amount of four items alleged to have been incurred in carrying on the business. The case of the Revenue was that the amount represented by the expenditure in question was inadmissible, for the expenditure was of capital nature, whereas the case of the assessee was that it was revenue expendit....

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....titions. Both the petitions were allowed in part. This court took the view that in respect of some items the action for reassessment was bad as it was based on a change of opinion, while in respect of others, the notices were valid and the Department was permitted to continue the reassessment proceedings in respect of which the notices were held valid. During the course of assessment proceedings, ....