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TMI Blog2013 (9) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... ng inseparable advantage from the projects to the assessee-corporation - Any administrative expense, which are made on the construction having enduring advantage to the assessee has to be treated as capital expense. It cannot be treated as revenue expenses of the organization – Decided against the Assessee. - Income Tax Reference No.-183 of 1990 - - - Dated:- 9-9-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Applicant : V. K. Rastogi, S. C. Agarwal For the Respondent : S. C. ,A. Kumar, A. N. Mahajan, B. Agarwal, D. Awasthi,G. Krishna,S. Chopra ORDER We have heard Shri V.K. Rastogi, learned counsel appearing for the applicant. Shri Sambhu Chopra appears for the income tax department. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses amounting to Rs.6,23,262/-." As the questions referred raise common questions of law in which only the amounts claimed as revenue expenses is different namely for the assessment year 1983-84 the expenses aggregates to Rs.4,53,258/- and for the assessment year 1984-85 the amount aggregates to Rs.6,23,262/-, we are deciding both the references together. The assessee is a public sector corporation for development of fisheries in the State of U.P. The entire share capital of the Corporation is owned by the Government of U.P. It derives its income from promotion and marketing of fish seeds and marketing fish and allied activities. The applicant also runs hatcheries and carries out fishing operations either by itself or through the agenci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital expenditure and that the work related to different hatcheries. The ITAT expressed its opinion as follows:- "We have given due consideration to the rival submissions as also to the material on record. We have also gone through the decisions cited before us. We find ourselves in agreement with the findings arrived at by the authorities below. The five works in question on which the expenditure was incurred are situated in districts of Lucknow, Allahabad, Sitapur, Mathura and Basti. It is thus obvious that these projects are situate at considerably distance from each other. The registered office of the assessee is situate at Lucknow. In the circumstances, there appears little force in the contention of the assessee that the staff was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... setting up unit for securing the amount for the Financial Corporation could not be treated as expenses on capital account. The assessee controlled both the ventures of spinning and weaving mills as well as straw board factory. The management, trading organisation, administration, funds and the place of business were identical. In the circumstances, it was held that the setting up of the straw board factory cannot be said to be the initiation of a different business and on that ground the expenditure could not be disallowed. Shri Sambhu Chopra on the other hand submits that it is not denied that works of capital nature were in progress. The administrative expenses were incurred on the work of capital nature, which will give enduring benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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