Tax Case Appeal is filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal C Bench, Chennai in I.T.A.No.1970 (Mds)/95, dated 05.08.2003, for the Assessment Year 1992-93.

F.M. IBRAHIM KALIFULLA, J.

The substantial question of law that arises for consideration in this appeal and as framed at the time of admission is as under:

"Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in holding that the expenditure on setting up new sugar units in Orissa were allowable as a revenue expenditure on the ground that the said expenditure has been incurred for the expansion of the assessees existing business ?"

2. The assessment year was 1992-1993. The issue centres around the expenses relating to Baramba and Dhenkanal sugar units of the respondent. The respondent is having three different lines of manufacturing activities viz., Sugar Division, Distillery Division and Foundry Division.

3. In the Sugar Division, its factory at Sakthi Nagar is situated in Periyar District, Tamil Nadu has been noted as Unit-I, its manufacturing unit at Padamathur, Sivaganga Taluk, P.M.T. District also