1986 (2) TMI 16

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....rt was delivered by PUTTASWAMY J.-In these references made under section 256(1) of the Income-tax Act, 1961 (hereinafter called "the Act"), the Income-tax Appellate Tribunal, Bangalore Bench, Bangalore ("the Tribunal"), at the instance of the Revenue, has referred the following question of law for the assessment years 1970-71 to 1973-74 of one and the same assessee. "Whether, on the facts an....

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....3-74, the assessee claimed the expenditure incurred on project reports and feasibility studies as "revenue expenditure" before the Income-tax Officer, Company Circle, Bangalore, who disallowed the same and held that it was "capital expenditure". On appeals filed by the assessee, the Appellate Assistant Commissioner of Income-tax, Bangalore, allowed them and held that it was "revenue expenditure" w....

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....ture incurred was capital expenditure or revenue expenditure, have concurrently found that the expenditure incurred by the assessee, with due regard to the nature of business, was revenue expenditure. We are of the view that in reaching its conclusions, the Tribunal had not misapplied the legal principles. We see no merit, in the contention of Sri Srinivasan that the expenditure incurred was not r....