2008 (7) TMI 394

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.... court was delivered by K. RAVIRAJA PANDIAN J. - This appeal is filed by the Revenue against the order of the Income-tax Appellate Tribunal, Madras "C" Bench, dated November 30, 2007, in I. T. A. No. 2096/Mds/2006. The relevant assessment year is 2003-04. The substantial questions of law formulated in this appeal are as follows: "1. Whether, on the facts and circumstances of the case, the Tr....

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....reated the same as capital expenditure. On appeal, the Commissioner of Income-tax (Appeals) following the decision of this court in the case of CIT v. Seshasayee Brothers P. Ltd. [1981] 127 ITR 218 and that of the Kerala High Court in the case of CIT v. Kerala State Industrial Development Corporation Ltd. (No. 1) [1990] 182 ITR 62, allowed the appeal in favour of the assessee. The appeal preferred....

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....stem highways bridge projects in the State on a commercial frame work. On the abovesaid finding of fact, the Commissioner (Appeals) has come to the conclusion that those expenses cannot be treated as capital expenditure for the current year and the expenses clearly come within the ambit of the provisions of section 35D because these have not been incurred for the expansion or extension of business....