1991 (9) TMI 43

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....This income-tax reference relates to three assessment years 1967-68, to 1969-70. The assessee, a private limited company, carried on a business in colonisation during the years in dispute. The assessee had constructed a school building known as Chandra Balika Vidyalaya in a colony established by it. The total cost of construction of the building was Rs. 76,060 which was debited as business expendi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enditure was revenue in nature. Aggrieved, the Commissioner of Income-tax has come in reference to this court. The Tribunal has sought our opinion on the following question : " Whether, in the facts and circumstances of the case, was the expenditure incurred in the construction of school building in the colony was a capital expenditure or an expense of revenue nature ? " We have heard ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....had been assured at the advertisement stage, it would have been enough, if the assessee had just left an open space in the colony without constructing the school building as such. We agree with the assessee at the provision of various amenities would persuade the prospective buyers to purchase plots in the colony in question and in any case the commercial expediency has to be determined from the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of an amenity which would persuade prospective buyers to purchase plots in the colony in question and also the further finding of fact recorded by the Income-tax Appellate Tribunal that it was as a matter of commercial expediency which was to be determined from the angle of the assessee, that the said building was constructed in order to boost the business of sale of plots in the new colony establ....