2015 (10) TMI 2512 - AT - Income Tax

Disallowance of claim for deduction u/s. 37(1) in respect of revenue expenditure - Held that - The assessment order and the order of the First Appellate Authority in the case of M/s. Reliance Footprint Ltd (2013 (12) TMI 161 - ITAT MUMBAI ) are identical to the assessment order and the order of the First Appellate Authority in the case in hand and as no distinguishing decision has been brought to our notice, respectfully following the same we set aside the order of the Ld. CIT(A) and direct the AO to delete the impugned addition. - Decided in favour of assessee.

Summary

Issues: Disallowance of claim for deduction u/s. 37(1) in respect of revenue expenditure

In this case, the assessee appealed against the order of the Ld. CIT(A)-6, Mumbai regarding the disallowance of a claim for deduction u/s. 37(1) for revenue expenditure incurred during the year amounting to Rs. 4,08,41,533. The assessee's counsel referred to a previous Tribunal decision in a similar case, M/s. Reliance Footprint Ltd, where the Tribunal ruled in favor of the assessee. The Tribunal found that the facts in the current case were identical to the previous case, and the reasoning for disallowance by the AO and the First Appellate Authority were the same in both cases. As no distinguishing decision was presented, the Tribunal followed the previous decision and directed the AO to delete the impugned addition. Consequently, the appeal by the assessee was allowed, and the order of the Ld. CIT(A) was set aside.