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Judgment
Heard learned Counsel on both sides.
Leave granted.
Having examined the facts and circumstances of the case, which pertains to the assessment year 1998-99, and particularly in the light of the orders passed for the earlier assessment years 1996-97 and 1997-98 as also having regard to the assessment orders passed in the following year (1999-2000) and in view of the judgement of this Court in the case of Commissioner of Income Tax, Delhi Vs Woodward Governor India P. Ltd. , we are of the view that the income tax Appellate Tribunal ("Tribunal", for short) was wrong in refusing to rectify its own order u/s 254 of the income tax Act, 1961, particularly when it has failed to appreciate that, in any event, the expenditure could have fallen on the capital account, which was specifically pleaded by the Assessee as an alternate submission. (See page 73 of the SLP paper book).
For the aforestated reasons, the impugned judgement of the High Court is set aside and the matter is remitted to the Tribunal. We direct the Tribunal to decide the matter de novo in accordance with the law laid down by this Court in the case of Commissioner of Income Tax, Delhi Vs Woodward Governor India P. Ltd as well as on the merits of this case.
The civil appeal is, accordingly, allowed.
No. order as to costs.