9911796707
TMI Blog2013 (12) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... & General Mills, Ludhiana [2008 (8) TMI 202 - PUNJAB AND HARYANA HIGH COURT] - The expenses incurred by the assessee for exploring the possibility of setting up of a project is a revenue expenditure as no asset of permanent nature with enduring benefit is acquired by the assessee - Decided against Revenue. - I.T.A. No.117 of 2004 - - - Dated:- 22-5-2013 - Hemant Gupta And Ritu Bahri,JJ. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal was right in law in deleting the additions of the amount incurred by the assessee on pre operative expenses incurred by the assessee prior to manufacturing of the motorcycles? During the course of assessment, the assessee was asked to explain as to why value of closing stock of spares and tools and items of sundry repairs may not be added in the immediate preceding year. The stand of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repair items, relied upon the order passed by it on 21.8.2002 in the case of M/s Hero Cycles Ltd., Ludhiana Vs. ACIT, CC, Ludhiana in ITA Nos.340/Chandi/95 and set aside the amount of closing stock of 15 days ordered to be taken into consideration by the Commissioner of Income Tax (Appeals). However, pre-operative expenses was allowed as the revenue expenditure, relying upon an order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ana' (decided on 11.08.2008) has found that the expenses incurred by the assessee for exploring the possibility of setting up of a project is a revenue expenditure as no asset of permanent nature with enduring benefit is acquired by the assessee. It was observed to the following effect:- After hearing learned counsel for the parties, we find that the view expressed by the Tribunal allowing the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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