1993 (11) TMI 41

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..... wo connected applications under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), filed at the instance of the Commissioner of Income-tax, Allahabad. Income-tax Application No. 272 of 1991 is in respect of the assessment year 1968-69 in which the following three questions have been proposed : '(1) Whether, on the facts and in the circumstances of the case, the Ap .....

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..... up of plant and machinery was revenue expenditure ?" The other application, i.e., Income-tax Application No. 273 of 1991, is in respect of the assessment year 1969-70 in which the following two questions have been proposed: "(I) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that in reassessment proceedings the Assessing Officer was not .....

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..... ssment year 1968-69 only. The figure of Rs. 1,93,581 referred in the question is an aggregate amount of four items alleged to have been incurred in carrying on the business. The case of the Revenue was that the amount represented by the expenditure in question was inadmissible, for the expenditure was of capital nature, whereas the case of the assessee was that it was revenue expenditure and was l .....

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..... the petitions were allowed in part. This court took the view that in respect of some items the action for reassessment was bad as it was based on a change of opinion, while in respect of others, the notices were valid and the Department was permitted to continue the reassessment proceedings in respect of which the notices were held valid. During the course of assessment proceedings, the Income-tax .....

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..... n its construction, in our opinion, it gives rise to a question of law. Therefore, the questions concerning the reassessment proceedings proposed for the two years in dispute do arise out of the order of the Income-tax Appellate Tribunal. In view of what has been indicated above, in our opinion, these two applications are liable to succeed. Accordingly, we direct the Income-tax Appellate Tribuna .....

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