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TMI Blog2023 (10) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds raised by the assessee in its appeal preferred before the Tribunal, it would stand remanded to the AO for examination of the character and nature of the expenses incurred, having regard to the principles adverted to [ 2023 (10) TMI 467 - DELHI HIGH COURT ] the instant appeal is disposed of with the following directions, as the view taken in the said appeal will apply mutatis mutandis to the instant case as well Appellant/assessee will be entitled to claim the deduction, as, in our opinion, it is in the nature of revenue expenditure. - Hon'ble Mr. Justice Rajiv Shakdher And Hon'ble Ms. Justice Tara Vitasta Ganju For the Appellant : Mr Tarun Gulati, Sr. Adv. with Ms Aakanksha Kaul, Mr Aman Sahai, Mr Kumar Sambhav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly difference that obtains in the questions of law framed in ITA No.1398/2006 concerns the quantum of fees paid to the consultant. 4.1. In the instant AY, i.e., AY 1993-94, the fees paid to Gherzi Eastern Ltd [hereafter referred to as, GEL ] was Rs.2,81,525/-, whereas, in AY 1992-93, GEL was paid fees amounting to Rs.23,18,695/-. 5. We may note that the AO via the assessment order dated 25.03.1996 had disallowed Rs.3,64,11,478/- incurred by the appellant/assessee on account of renovation and refurbishment . Likewise, Rs.2,81,525/- paid by the appellant/assessee as a professional fee to GEL was also disallowed. 5.1 The Commissioner of Income Tax (Appeals) [in short, CIT(A) ] via order dated 27.11.1996 deleted the disallowance co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be entitled to claim the following deductions, as, in our opinion, they are in the nature of revenue expenditure: (i) Rs.3,64,11,478/- incurred on renovation, refurbishment and repairs. (ii) Rs.2,81,525/- incurred on payment of fees to GEL. 9.1 Insofar as the amount of Rs. 10,43,12,000/- is concerned, which was initially capitalized and was claimed as revenue expenditure for the first time before the Tribunal and forms part of the additional grounds raised by the assessee in its appeal preferred before the Tribunal, it would stand remanded to the AO for examination of the character and nature of the expenses incurred, having regard to the principles adverted to in ITA 1398/2006. 10. Thus, the first question of law as f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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