CHIEF COMMISSIONER OF INCOME TAX(OSD), (CENTRAL)-2 vs. M/S MINDA INDUSTRIES LTD.,

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ITA/358/2017HC DelhiDLHC01206286201731 May 2017Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the view taken by the ITAT, which allowed travel expenses incurred for new projects and new ventures to be treated as revenue expenditure, could not be faulted. The Court explicitly stated it was not inclined to frame an issue on this question, indicating its agreement with the ITAT's conclusion. The reasoning appears to be that the nature of the expenditure as revenue was considered acceptable by the Tribunal. The operative direction was to dismiss the appeal filed by the Revenue. No issues were expressly left undecided.

What were the facts?

The Revenue, represented by the Chief Commissioner of Income Tax (OSD), (Central)-2, filed an appeal before the Delhi High Court against an order dated 28th October, 2016, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 4006/Del/2013. The appeal pertains to the Assessment Year 2009-10. The Revenue sought to challenge the ITAT's decision regarding the allowability of travel expenses incurred for new projects and ventures. The High Court noted a delay of 12 days in filing the appeal, which was condoned.

What were the issues?

1. Whether travel expenses incurred for new projects and new ventures can be allowed as revenue expenditure? (Question of law/mixed law and fact, concerning the nature of expenditure under the Income Tax Act, 1961). Assessee's Contention: The judgment does not record any specific contentions made by the assessee, Minda Industries Ltd., before the High Court. However, it implies that the assessee's position, as upheld by the ITAT, was that such travel expenses should be treated as revenue expenditure. Revenue's Contention: The Revenue's sole contention, as presented in the appeal, was that travel expenses incurred for new projects and new ventures should not be allowed as revenue expenditure. The High Court did not frame a specific issue based on this, indicating it found the matter straightforward.

AI-generated summary — verify with the full judgment below

$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 358/2017

CHIEF COMMISSIONER OF INCOME TAX(OSD), (CENTRAL)-2

..... Appellant Through: Mr. Sanjay Kumar & Mr. Dilip Shivpuri, Advocates

versus

MINDA INDUSTRIES LTD.

..... Respondent

Through

CORAM: JUSTICE S.MURALIDHAR JUSTICE CHANDER SHEKHAR

O R D E R %

31.05.2017

CM No. 16905/2017

Allowed, subject to all just exceptions. CM No. 16904/2017 2. For the reasons stated therein, the application is allowed. Delay of 12 days in filing the appeal is condoned.

ITA No. 358/2017 3. This is an appeal by the Revenue against the order dated 28th October, 2016 passed by the Income Tax Appellate Tribunal („ITAT‟) in ITA No. 4006/Del/2013 for the Assessment Year 2009-10.

ITA No.358 of 2017

Page 1 of 2

The only question in the present appeal is whether travel expenses incurred for new projects and new ventures can be allowed as revenue expenditure. The view taken by the ITAT that travel expenses should be treated as revenue expenditure cannot be faulted. The Court is not inclined to frame an issue on this question.

The appeal is dismissed.

S.MURALIDHAR, J

CHANDER SHEKHAR, J MAY 31, 2017 tp

ITA No.358 of 2017

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