1999 (11) TMI 53

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..... t Cricket Club was the subject-matter. 100 per cent. deduction was claimed, claiming that the expenditure was in the nature of staff welfare activity. It was pointed out to the Assessing Officer that the said expenditure was claimed on the ground of commercial expediency in order to facilitate the carrying on of the business indirectly, by satisfying the needs of the executives and staff. The Assessing Officer held that a benefit of enduring nature has accrued to the assessee-company, and therefore, the same has resulted in the acquisition of a capital asset. It seems that the Commissioner of Income-tax (Appeals) hearing the appeal against the order passed by the Assessing Officer was not satisfied with regard to the finding of fact recorde .....

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..... n of a capital asset. The Tribunal accepted the facts pleaded and pointed out that in the absence of any evidence that seats are reserved for the directors or their family members only, merely on the basis of an apprehension that they could be used only by them, the Department cannot disallow the claim. The tribunal further observed that an expenditure can be considered as capital in nature only when any capital asset had been created by the assessee by the expenditure. It was not disputed before the Tribunal that the assessee had no proprietary right on, the seats which had been promised by the association to be allotted at the time of any event or game. The Tribunal, therefore, held that the capital structure of the company has not been .....

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..... . If the advantage consists merely in facilitating the assessee's trading operations or enabling the management and conduct of the assessee's business to be carried on more efficiently or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite future. The test of enduring benefit is, therefore, not a certain or conclusive test and it cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case." It seems that the Tribunal, considering the decision as aforesaid and on the material placed before it, arrived at a conclusion. In our view, therefore, it cannot be said that any question of .....

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