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TMI Blog1984 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... st. yr. 1981-82 as revenue expenditure. The appeals relate to asst. yrs.1980-81 and 1981-82 for which the previous years ended by 31st March, 1980 and 31st March, 1981 respectively. 2. The assessee is a registered firm and it runs a poultry farm at Visakhapatnam. It is said that they would purchase one-day chicks, rear them by putting them in cages. The assessee incurred an expenditure of Rs. 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of the assessee firm maintained for the respective accounting periods. The profit and loss account for the financial year 1979-80 is furnished at page 3 and for the period from 1st July, 1980 to 31st March, 1981 it is shown at page 5 of the paper compilation filed before us. The ITO did not allow the expenditure as a deduction on the ground that the expenditure had brought into existence a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng cages should not be treated as capital expenditure but should be treated only as revenue expenditure. The AAC agreed with the assessee s contention especially because in places like Visakhapatnam which has a sea coast the wire mesh gets rested and breaks down frequently. Therefore, he agreed with the contention of the assessee that the expenditure incurred over the purchase of wire mesh and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it and loss account for the accounting years involved and the particulars of the bill amounts etc., under which the wire mesh was purchased and the particulars of the incidental expenses as well as the sales-tax incurred were furnished. 5. After hearing both sides we one with the AAC while holding that the expenditure is of a revenue nature especially in view of the fact that the poultry is situ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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