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TMI Blog2012 (6) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... tion with exploring the feasibility of a new business venture different from the existing line of business then such expenditure is capital expenditure and not revenue expenditure - decided in favour of the Revenue - Income Tax Reference No. 67 OF 1989 - - - Dated:- 15-6-2012 - S J Vazifdar And M S Sanklecha, JJ. For Appellant : Mr. J D Mistry, Sr. Adv along with Mr. B D Damodar Adv i/by K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sional fees of Rs.3,44,630/- in relation to its cement project at Chandrapur. The Applicant claimed the above expenses as a revenue expenditure on the ground that the cement project is not a new business but an extension of its existing business. The Applicant was during the Assessment Year 1979-80 inter alia engaged in the business of manufacturing cement manufacturing machinery. Subsequently the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at issue in the present application is covered against the applicant by the decisions of this Court in the matter of C.I.T. Vs. J.K. Chemicals Ltd. 207 ITR 985 and Trade Wings Limited Vs. C.I.T. 185 ITR 267 . In the above cases it has been held that where the expenditure is incurred for the project /feasibility report in connection with exploring the feasibility of a new business venture differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture for the purpose of business and allowed as Revenue expenditure. In support of his above contention, he relied inter alia upon the following decisions: (i) Produce Exchange Corporation Ltd. reported in 77 ITR 739 (S.C.) (dealing with carry forward of business losses); (ii) Standard Refinery and Distillery Ltd. reported in 79 ITR Page 589 (S.C.) (dealing with carry forward ..... X X X X Extracts X X X X X X X X Extracts X X X X
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