2006 (1) TMI 83

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..... ng the following questions of law for our consideration: Tax Cases (Appeal) No. 1378 of 2005: "(i) Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the deferred revenue expenditure claimed by the assessee on account of certain repair/renovation works is deductible as revenue expenditure in the assessment year 1995-96, when the work was undertaken in the .....

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..... under section 271(1)(c) when the Assessing Officer had produced evidence to show that false claims had been made by the assessee in order to claim depreciation, additional depreciation and investment allowance that was not due to it, purposely reduce the income and evade tax?" The assessment years are 1995-96 and 1984-85. The assessee claimed a deduction of deferred revenue expenditure incurred .....

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..... issioner of Income-tax (Appeals) reversed the findings arrived at by the Assessing Officer by giving a reason that the expenditure incurred in the previous year was not supported by any necessary evidence and in any case, that would not make any vital difference in the claim of the assessee, as the receipt of debit note in the previous year has not been disputed by the Assessing Officer. For the a .....

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..... g of the business of the assessee. The findings of the Commissioner of Income-tax (Appeals) have been confirmed by the Tribunal on appeal. Learned senior Central Government standing counsel for the Department has contended that the expenditure towards black topping on the ground, repairs and levelling of platforms, godown and roads during the year 1993-94 was incurred by M/s. Sanco Warehousing Lt .....

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..... s not been disputed by the Assessing Officer would also fortify the contention of the assessee. Likewise, the black topping on the ground and levelling of platforms, godown, roads, etc. are for the purpose of smooth functioning of the business, though the property is a leased out property and it cannot be, at any stretch of imagination, considered to be an enduring benefit of capital expenditure. .....

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