The Commissioner Of Income Tax-1 v. National Organic Chemical Industries Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 2442 OF 2011 The Commissioner of Income Tax-1...Appellant.v.National Organic Chemical Industries Ltd..Respondent. Mr. C. Chanderpal for the Appellant. Mr. Ajit Shah with S.M. Iyer for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 7th March, 2013 PC: In this appeal by the revenue for assessment year 1998-1999 following questions of law have been raised for our consideration. a)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in allowing expenditure on consultancy and advisory fees amounting to Rs.3,65,51,614/- for restructuring of business operations as revenue expenditure being payment made to parties during the year for restructuring of business operations even though such expenditure was clearly capital in nature? b)Whether on the facts of the case and in law the Tribunal was justified in allowing expenditure on consultancy and advisory fees amounting to Rs.1,50,000/- paid to various persons during the year for modernization of project as deduction even though such expenditure was clearly capital in nature? 2)The Counsel for the parties state that an identical issue was raised by the revenue in respect of the same respondent assessee in Income Tax Appeal No.1762 of 2011 and this Court by an order dated 11/2/2013 refused to entertain the revenue's appeal. For the reasons stated in our order dated 11/2/2012 in Income Tax Appeal No.1762 of 2011, we see no reason to entertain the proposed question of law. 3)Accordingly, the appeal is dismissed with no order as to costs. (M.S.SANKLECHA, J.) (J.P. DEVADHAR, J.)