COMMISSIONER OF INCOME TAX Vs. TORRENT PHARMACEUTICALS LTD

JUDGEMENT

(1.) The Revenue has preferred the present appeal under section 260A of the Income-tax Act, 1961 against the order dated 11.2.2011 of the Income Tax Appellate Tribunal Ahmedabad Bench 'C' in ITA No. 241 of 2008.

(2.) For claiming garden expenses as revenue expenditure the explanation of the assessee was that the said expenditure was required to be incurred for gardening inside the factory premise so as to control the pollution. The CIT (A) observed that in the assessee's own case for the Assessment Year 2003-2004, he was given the benefit for such expenditure as revenue expenditure. In respect of the second disallowance, the CIT (A) was of the view that the registration fees in foreign countries for the purpose of export was paid on recurring basis depending upon validity of various registrations and the same would have to be repaid on expiry of registration. According to the CIT (A), the assessee was entitled to treat the said expenditure as revenue expenditure.

(3.) The Tribunal in the impugned order recorded the findings inter alia as under: