Commissioner of Income Tax vs Chemicoat Limited

D.A. Mehta, J.—Income Tax Appellate Tribunal, Ahmedabad Bench "C" has referred the following question, at the instance of applicant Revenue, for assessment years 1984-85 and 1988-89:

Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the expenses of Rs. 3,77,242 for A.Y. 1984-85 and Rs. 44,856 for A.Y. 88-89 incurred by the assessee for setting up a new unit was allowable as revenue expenditure?

Heard learned senior advocate Shri M.R. Bhatt on behalf of applicant Revenue. It was pointed out that while passing the impugned order dated 3/7/1998, the Tribunal has placed reliance upon its own order for earlier assessment years which had been brought before this Court by way of different references, and the controversy now stands concluded against the Revenue.

Though served, none appears on behalf of respondent assessee.

In light of the fact that the controversy stands concluded by judgments rendered by this Court in Income Tax Reference No. 260 of 1984 And Income Tax Reference No. 333 of 1984 dated 20/12/1999; Income Tax Reference No. 173 of 1986 dated 04/07/2001; and Income Tax Reference No. 58 of 1992 dated 06/11/2001 between the same parties for various earlier assessment years, it is not necessary to set out the facts and contentions in detail. For the reasons recorded in the aforesaid judgments of this High Court, the question referred for the opinion of the Court is answered in the affirmative, i.e. In favour of assessee and against Revenue. Reference stands disposed of accordingly, with no order as to costs.