IN THE HIGH COURT OF DELHI AT NEW DELHI 
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         ITA 1084/2006  
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 COMMISSIONER OF INCOME TAX DEL      ..... Appellant 
 Through       Ms. P.L. Bansal 
 versus 
 M/S DCM LTD.                        ..... Respondent 
 Through       Mr. Santosh Agarwal 
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 CORAM: 
 HON'BLE MR. JUSTICE MADAN B. LOKUR 
 HON'BLE MR. JUSTICE VIPIN SANGHI 
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 O R D E R 
                               22.08.2006 
 The Revenue is aggrieved by an order dated 16th December, 2005 passed by 
 the Income Tax Appellate Tribunal, Delhi Bench ?F? in ITA No.3610/Del/02 
 relevant for the assessment year 1994-95. 
 The Revenue has raised the following three questions of law for our 
 consideration: 
 a)       Whether the ITAT was correct in law in remanding the issue back to the 
 Assessing Officer for deciding afresh the issue regarding addition of 
 Rs.1,11,61,491/- in valuation of closing stock of raw material in DCM Data 
 Products Unit? 
 . 
 b)       Whether the ITAT was correct in law in deleting the addition of 
 Rs.1,90,01,701/- made by the Assessing Office by disallowing expenditure 
 incurred by the assessee in connection with issue of partly convertible 
 debentures? 
 . 
 c)       Whether expenditure incurred by the assessee on issue of partly 
 convertible debenture is a capital expenditure or of revenue nature? 
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 In so far as question (a) is concerned, we have already dealt with this 
 issue in ITA No.930/2005 and ITA No.1056/2006. 
 Under the circumstances, we are of the view that question (a) raised by 
 the Revenue is not a substantial question of law which would require our 
 consideration. 
 In respect of questions (b) and (c), we are of the view that a 
 substantial question does arise and therefore we admit this appeal in respect 
 thereof and reformulate the substantial questions for our consideration: 
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 ?Whether the Income Tax Appellate Tribunal was correct in law in allowing the 
 entire expenditure of Rs. 1,90,01,701/- incurred by the Assessee in connection 
 with the issue of partly convertible debentures as a revenue expenditure?? 
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 Paper books be filed in accordance with the High Court Rules. 
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 MADAN B. LOKUR, J 
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 VIPIN SANGHI, J 
 AUGUST 22, 2006 
 Upreti 
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