Allowing the appeal of the revenue the Court held that, whether pre operative expenses allowable as revenue expenses, whether the expenditure incurred on estimate basis could be reduced from dividends and whether transfer pricing adjustment to consultancy charges is justified or not, as the High Court has failed to independently evaluate the merits the departmental appeals, the matter remanded to High Court for consideration afresh. ( AY. 2003 -04 to 2006 -07)
CIT (LTU) v. Reliance Industries Ltd. (2019) 410 ITR 466 / 175 DTR 1 / 307 CTR 121/ 261 Taxman 165(SC) Editorial : Order of Bombay High Court in CIT (LTU) v. Reliance Industries Ltd.( ITA Nos 1550/ 1592/ 1775 and 1881 of 2014 dt 22-08 2017 , 23 -08 2017 is affirmed ( 2018) 161 DTR 420 /(2019) 410 ITR 468 (Bom)(HC)
S. 37(1) : Business expenditure–Capital or revenue-Pre-Operative expenses -Expenditure incurred on estimate basis could be reduced from dividends-Transfer pricing adjustment to consultancy charges-High Court has failed to independently evaluate the merits-Matter remanded to High Court for fresh consideration. [S. 80M, 92C]