2013 (10) TMI 1517 - HC - Income Tax

Summary

Issues involved: Appeal by Revenue challenging decision of Income Tax Appellate Tribunal on various grounds.

Ground (A): The Assessee incurred expenses for plot/site development on leased land, which was held to be revenue expenditure as no enduring benefit was derived. Tribunal justified in this conclusion as the expenditure was to render the land usable for business activities without resulting in any enduring benefit.

Ground (B): CIT(A) deleted an addition but directed Assessing Officer to treat it as income for the relevant Assessment Year. Tribunal held that CIT(A) had no jurisdiction to make such a direction for a year not under appeal, in line with legal principles.

Ground (C): Tribunal found that the creditors in question were not bogus but actual contractors based on the return of income filed by the Assessee and acceptance of the same by the Department. Section 68 not applicable as payments were made to genuine contractors, leading to dismissal of appeal.

In conclusion, the High Court dismissed the appeal by the Revenue based on the findings and reasoning provided by the Tribunal for each ground of appeal.