2009 (1) TMI 7

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....ohra with Ms Kavita Jha and Mr Sriram Krishna JUDGMENT BADAR DURREZ AHMED, J 1.   These three appeals pertain to the assessment years 1994-95, 1995-96 and 1997-98 arising out of the common order dated 14.02.2008 passed by the Income-tax Appellate Tribunal in ITA Nos. 294 and 295/Del/2003 and ITA No.1961/Del/2004 respectively. 2.   The revenue is aggrieved by the fac....

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....nistrative expenses" incurred in connection with modernization and expansion of the Deoband and Ramkola units, by holding that the expenditure had been incurred for acquiring a benefit of an enduring nature and consequently it was capital in nature. The Assessing Officer had also noted that the expenditure had been capitalized in the books of accounts maintained by the assessee and, therefore, the....

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....nery or building put to use in the years in question. It was also contended that the expenses were not for installation of new machinery or erection of new building or transportation of material and that they were purely administrative expenses of a revenue nature. It was also pointed out that the assessee had undertaken the expansion of its existing sugar mills with a view to enhance their capaci....

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....ollowed the decision of the Supreme Court in the case of The Kedarnath Jute Manufacturing Co. Limited v. The Commissioner of Income Tax (Central), Calcutta: 82 ITR 363 to hold that entries in the books of accounts of the assessee were not conclusive of the nature of expenses. The tribunal thereafter examined the issue as to whether in a continuing business, when expenditure is incurred for renovat....