2023 (10) TMI 516

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..... d 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 and Mr Adit Khorana, Advs. For the Respondent : Mr Zoheb Hossain, Sr. Standing Counsel with Mr .....

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..... instant AY, i.e., AY 1994-95, the fees paid to Gherzi Eastern Ltd [hereafter referred to as, "GEL"] was Rs.44,00,000/-, 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 27.03.1997 had disallowed Rs.3,48,92,811/- incurred by the appellant/assessee on account of "renovation and refurbishment". Likewise, Rs.44,00,000/- 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 14.07.1997 deleted the disallowance concerning "renovation and refurbishment" and remanded the issue to the AO for fresh examination, except Rs. 3,94,113/- concerning construction of mock .....

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..... d by the appellant/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 framed is answered in favour of the appellant/assessee and against the revenue, with the caveat that insofar as the expenses that were the subject matter of the additional grounds taken before the Tribunal, the issue concerning the same shall stand remanded to the AO for further examination on merits. 11. The second question of law is answered in favour of the appellant/assessee and against the revenue. 12. The appeal is disposed of in the aforesaid terms.
Case .....

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