JAY ENGINEERING WORKS LTD Vs. COMMISSIONER OF INCOME TAX
LAWS(DLH)-2007-10-40
HIGH COURT OF DELHI
Decided on October 05,2007

JAY ENGINEERING WORKS LTD Appellant
VERSUS
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

MADAN B.LOKUR, J. - (1.) At the instance of the Assessee, the following questions have been referred for our opinion under Section 256(1) of the Income Tax Act, 1961 (for short the Act) in respect of the assessment year 1979-80: - 1. Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in holding that the pre-operative expenditure of Fuel Injection Equipment Project amounting to Rs.20,14,158/- was a capital expenditure" 2. Whether on the facts and circumstances of the case, Tribunal was right in deleting the addition of Rs.41,666/- on the ground that the same was not disallowable u/s 37(3) read with rule 6B"
(2.) With regard to the second question, the tax effect of the amount in question is quite inconsequential and, therefore, we decline to answer this question and return the reference unanswered.
(3.) The first question is really the only substantive question that would require our consideration.;


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