COMMISSIONER OF INCOME TAX-I Vs. ALEMBIC LIMITED

JUDGEMENT

(1.) All these appeals preferred by the appellant - revenue under section 260A of the Income -tax Act, 1961, arise out of the common order passed by the Income -tax Appellate Tribunal (hereinafter referred to as "the Tribunal") on 6.6.2008 whereby the Tribunal has held the issues in favour assessee. We, therefore, decide the appeals by way of this common judgement.

(2.) These appeals were admitted by this court for consideration of the following substantial questions of law: Tax Appeal No. 471 of 2009:

(3.) So far as ground (A) of Tax Appeal No. 471 of 2009 is concerned, Mr. Parikh, learned counsel for the revenue, has contended that the Tribunal failed to appreciate that the payment was made not towards liability for payment of gas charges but it was of the nature of advance or deposit and could not be allowed as revenue expenditure under the mercantile system of accounting followed by the assessee.