TaxTMI 
TaxTMI 
2021 (2) TMI 549
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....ct that these papers had been produced before the lower authority? (2) Whether on the facts and in the circumstances of the case, the Tribunal was right in refusing to either go through the evidence themselves, or to remand the matter for appreciation of evidence, on the suspicion and surmise that the Appellant would fabricate evidence in the event of remand? (3) Whether on the facts and in the circumstances of the case, the Tribunal after acknowledging the fact that a part of the expenditure was for the purpose of inviting membership of health farm, was right in law in refusing to analyse the evidence to quantify the same or remand the matter to the assessing officer to do the same? and (4) Whether on the facts and in the circumstances of the case, the expenditure incurred on promoting the membership drive for the health farms can be ignored merely because the members started coming in only in the next financial year?" 3.The assessee, a public limited company, is in the business of running health farms and resorts. For the assessment year under Consideration, AY 1994-95, the assessee, in its return of income, claimed a sum of Rs. 1,89,84,676/- as revenue expenditure. The As....
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....ed that at the relevant point of time, there was an uncertainty as to whether such expenditure was to be regarded as a capital expenditure or a revenue expenditure and there was a genuine confusion in the mind of the assessee and the matter stood settled only after the decision of the Hon'ble Supreme Court in Brooke Bond India Ltd., vs. CIT [(1997) 10 SCC 362]. Therefore, it is submitted that the matter may be remanded to the Assessing Officer to reconsider the documents and arrive at a proper decision. 9.Per contra, Ms.V.Pushpa, learned Senior Standing Counsel for the Revenue submitted that for the first time before the CIT(A), the assessee claimed that all expenses are revenue expenditure and did not relate to the public issue and the correctness of the submission was tested by the CIT(A) and a finding was rendered upon examination of the printed accounts, which showed that the assessee had described the deferred revenue expenditure as expenditure on public issue only and not even one rupee was collected as membership subscription by the assessee during the accounting year, when the membership drive is supposed to have taken place along with the public issue in September, 19....
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.... which, it was stated that the expenditure represents public issue expenditure. The Assessing officer tested the stand of the assessee for its correctness and by applying the decision in Metro General Credits Ltd., (supra), held that the expenditure incurred for augmenting the capital of the assessee-company by public issue has an enduring effect and therefore, to be treated as capital expenditure. 15.For the first time before the CIT(A), the assessee appears to have given certain breakup details and stated that such of those expenditure was apart from the expenditure incurred by them for the public issue and such expenditure cannot be regarded as a capital expenditure because, it was for conducting a membership drive for enlisting members in one of their projects. Thus, it could be seen that for the first time before the CIT(A), the assessee sought to bi-circulate the expenditure into one, which was incurred for the public issue and the other for the membership drive. 16.The CIT(A) examined the matter for its correctness, perused the printed accounts of the relevant accounting year and held that not even one rupee was collected as membership subscription by the company during th....
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....he assessee had made an elaborate submission requesting the Tribunal to remand the matter back to the Assessing Officer for fresh consideration. The Tribunal rightly noted the various decisions of this Court and the Hon'ble Supreme Court, which have cautioned that orders of remand should be passed only in cases, where the original authorities have not passed orders in accordance with law, but in no case, remand should be made to enable an assessee to fill in the blanks or lacuna in the case which remains present. After noting various decisions on the power of the Tribunal to remand matters to the authority and under what circumstances can the Court pass orders of remand, the Tribunal, on facts, was convinced that there is no case made out by the assessee to remand the matter back to the Assessing Officer for fresh assessment. Further, the Tribunal accepted the argument of the Revenue that if the plea of remand is to be accepted at such a belated stage (1998), there is likelihood of tinkering with the evidence and remand will be prejudicial and detrimental to the interest of revenue and accordingly, rejected the prayer for remand. 20.We have set out the above facts to show tha....