DY C I T Vs. RAJESH MALLEABLES LTD

JUDGEMENT

(1.) REVENUE has challenged the judgment of the Income Tax Appellate Tribunal ('the Tribunal', for short) dated 12-4-2001. The issue pertains to deduction claimed by the assessee for the expenditure on technical consultancy fees. Revenue contends that such expenditure should be treated as provided under section 35AB of the Income Tax Act, 1961 ('the Act', for short). The Tribunal upheld the view of C.I.T. (Appeals) and rejected the revenue's appeal and hence, this present tax appeal before us.

(2.) AT the time of admission of the appeal, the following substantial question of law was framed:-

(3.) THE Assessing Officer, however, was of the opinion that deduction of such expenditure can be of only 1/6th of the amount actually expended during the year under consideration as provided under section 35AB of the Act and the rest of the deduction can be claimed in the later years. He, however, did not decide whether the expenditure was revenue or capital in nature since in his opinion, such issue was not relevant for the purpose of section 35AB of he Act.