Commissioner of Income Tax vs Dart Mfg. India (P.) Ltd.

This appeal is directed against the order dated 27.07.2007 passed by the Income Tax Appellate Tribunal in respect of the assessment year 2001-02 arising out of Cross Objection No. 99/Del./2007. The cross objection was disposed of by the said order which is a common order in respect of the appeal filed by the revenue before the Tribunal being ITA No. 4428/Del./2004. The appeal preferred by the revenue against that order was numbered as ITA No. 909/2008. The issue involved in that appeal and the present appeal is identical. It relates to the question as to whether the amount paid to the State Electricity Board for installing a transformer and low tension lines for supply of electricity to the assessee''s factory was an expenditure of a capital nature or of a revenue nature. The Tribunal held the same to be of a revenue nature inasmuch as the fixed capital structure of the assessee remained untouched. This Court by its order dated 12.08.2008 dismissed the revenue''s appeal in ITA No. 909/2008, confirming the Tribunal''s stand point Consequently, following the said decision, this appeal is also dismissed.