2008 (8) TMI 19

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.... HON?BLE MR JUSTICE RAJIV SHAKDHER   BADAR DURREZ AHMED, J (ORAL) 1.   The present appeal, filed on behalf of the revenue, pertains to the assessment year 2001-02 and is directed against the order dated 27.07.2007 passed by the Income-tax Appellate Tribunal. 2.   A sum of Rs 10,64,930/- was paid by the assessee in the relevant year to the State Electricity Boa....

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....y of electricity. The said State Electricity Board supplied these electricity lines, however, retaining the ownership of the cables. The assessee spent an amount of Rs 52 lakhs towards service charges paid to the said State Electricity Board. Since the assessee had not commenced production, being a new unit, it claimed the amount as a revenue expenditure. In that case, the contention raised by ....

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....towards laying of service lines, the cables did not belong to the assessee, but belonged to the Maharashtra State Electricity Board and, therefore, the benefit that the assessee got was of a commercial nature and was in the nature of a business advantage. Consequently, this court held that the expenditure incurred by the assessee ought to be treated as revenue expenditure. 5.   The fa....