2008 (8) TMI 316

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....citor-General of India ( Ms. Charuwali khanna, Balaram Das and Sparsh Bhargava, Advocates with him) for the respondent. ORDER 1. Leave granted. 2. These appeals are directed against the judgment and order dated 3.8.2007 passed by the High Court of Judicature at Rajasthan, Jaipur Bench, Jaipur in Income Tax Appeal No.270 of 2005 whereby and whereunder the appeal preferred by the appellant ....

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.... is seen that this expenditure is held to be purely as capital expenditure and disallowed. Therefore, in view of the past history of the case, the expenditure towards development and prospecting charges amounting to Rs.1460729/- is treated as of capital nature and disallowed." 5. Although no provision of the Income Tax Act has been referred to by the Assessing Officer in his order, the Commissi....

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....the claim of the asseesee should be more. So far as the observation of the assessing officers that in past, such expenditure is disallowed, ld. AR has mentioned that in earlier years no such disallowance was made except in assessment year 1995-96 and the assessment year 1996-97 claim of development expenses was disallowed on the ground that assessee has not been able to prove that the expenses on ....

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....trative set up and this was in the nature of revenue receipt whereas the ld. DR contended that this expenditure was of the capital nature because the corporate plan expenditure was of enduring benefit to the assessee company." 7. The High Court, however, by reason of the impugned judgment proceeded to invoke the provisions of Section 37(1) of the Income Tax Act. It is not in dispute that had th....