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TMI Blog1989 (10) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal (for short "the Tribunal"): "(1) Whether the Tribunal is justified in allowing the expenditure for advertisement in magazines and souvenirs in the nature and circumstances of the case ? (2) Whether, the Tribunal is justified in allowing the expenditure incurred for new year compliments as an expenditure incurred during the course of the activity of the company in the nature and circumstances of the case ? (3) Whether the Tribunal is justified in allowing the claim for loss on revaluation of loose tools treating the same as an accountancy practice when there are no expenses incurred by the assessee ? (4) Whether the Tribunal is justified in allowing the claim for expenditure on stamp and stamp paper treating the same as a rout ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view that the Appellate Tribunal was justified in allowing the expenditure for advertisement in magazines and souvenirs and also in allowing the expenditure for new year compliments. The broad guidelines in this regard have been laid down by the Supreme Court in Travancore Rubber and Tea Co. Ltd.'s case [1961] 41 ITR 751 which was given effect to by this court in Malayalam Plantations Ltd.'s case [1978] 115 ITR 624 and in Kartikulam and Alathur Estates' case [1988] 169 ITR 386 (Ker). Therefore, questions Nos. 1 and 2 are largely academic in nature and we do not find our way to direct the Tribunal to refer the questions to this court. In deciding the matter against the Revenue, the Tribunal has only given effect to the decision of the Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmature plants and so expenditure on new plants, though in the mature area, and should be capitalised. The Tribunal found that the assessee has only interplanted new cardamom plants in the place of the ones which got dried up and decayed and in order to keep the estate well-kept, a uniform planted area should be kept as matter of routine. It also held that no new planting was done in the process and what was done was only in the nature of filling up of vacancy and not in the form of "new plantation". On this finding, it is evident that no question of allowing an expenditure, much less a capital expenditure, is involved calling in aid Explanation (2) to section 5 of the Act. In the light of the finding of the Tribunal that what was done is o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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