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2015 (10) TMI 2500 - ITAT CHANDIGARHDisallowance of earnest money given for acquisition of land - Held that:- If any asset is acquired and if it is a benefit of enduring nature, then, of course, assessee cannot get deduction of the amount for acquisition of land as Revenue expenditure. When land was not acquired, no capital asset has been acquired and therefore, the payment of ₹ 7,46,088/- is to be allowed as business loss. In our view, the CIT(A) has correctly held that the claim of the assessee as business loss and deserves to be allowed. - Decided against revenue Disallowance treating the expenditure claimed as deferred revenue expenditure in P&L and incurred on employee restructuring and re-engineering of business, as capital expenditure - CIT(A) allowed the claim - Held that:- The expenditure was essentially of Revenue nature as it was incurred for improvement of business practices linked with marketing and human resource utilization. It is claimed that the scope of the study relates to the promotion of products of company in order to sustain market pressure and to maintain its market position. It is also explained that the scope further included employee restructuring also so as to save the manpower cost and to achieve best utilization of human effort. , Thus it is clear that there was no creation of capital asset in the case of assessee company. In view of the above, we do not find any merit in the ground raised by the Revenue - Decided against revenue Additional depreciation claim - Held that:- Considering the entire facts and circumstances of the present case, we uphold the order of CIT(A). In our opinion the Ld. CIT(A) has correctly directed the Assessing officer to examine the claim of the assessee pertaining to additional depreciation on merits and, if found to be entitled, the same may be allowed to the assessee. There is no merit in this ground of appeal and accordingly the same is dismissed. - Decided against revenue
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