Bajaj Auto Ltd v. The Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 321 of 1999 Bajaj Auto Ltd. ... Applicant. vs. The Commissioner of Income Tax ... Respondent Ms. V. B. Patel, for Applicant. Mr. Ashok Kotangale, Sr. Counsel with Mr. D.A. Dubey for Respondent. CORAM: V. C. DAGA AND A. S. AGUIAR JJ. Date:August 5, 2005. P. C.: 1. By this reference under section 256(1) of the Income-tax Act theTribunal has referred the following question of law for opinion at theinstance of the Revenue:Tribunal has referred the following question of law for opinion at theinstance of the Revenue: Whether on the facts and in the circumstances of thecase and in law, the Tribunal was right in holding thatguarantee commission paid to banks on import of capitalgoods was to be regarded as capital expenditure? case and in law, the Tribunal was right in holding thatguarantee commission paid to banks on import of capitalgoods was to be regarded as capital expenditure? 2. Counsel for both the sides fairly agree that the above question iscovered by the judgment of this court in the case of KineticEngineering Ltd. Vs. Commissioner of Income Tax, reported incovered by the judgment of this court in the case of KineticEngineering Ltd. Vs. Commissioner of Income Tax, reported in [1998] 233 ITR 762. 3. In this view of the matter the above questions is answered in thenegative, i.e. in favour of the assessee and against the Revenue.Reference stands disposed of with no order as to costs. negative, i.e. in favour of the assessee and against the Revenue.Reference stands disposed of with no order as to costs. (V. C. DAGA J. ) (A. S. AGUIAR J.)