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TMI Blog2010 (10) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... f expenditure had to incur substantial amount of expenditure before submitting its bid if the assessee is not successful in obtaining bid, such expenditure is allowable as revenue expenditure - The Tribunal has held that merely because the assessee failed to secure a bid, the expenditure cannot be disallowed - Decided in favour of assessee. Depreciation - the status of assessee company as on the date of transfer of the asset is 100% subsidiary company of M/s. Essar Gujarat Ltd" - Tribunal order for the Assessment Year 1993-94 in assessee's own case wherein the claim of the assessee was decided in the favour of the assessee - The ld. CIT(A) following the said order of the Tribunal directed the Assessing Officer to re-compute the depreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein ITAT allowed the expenses of similar nature incurred in that year. Further the assessee relied on the decision of the CIT(A) for the assessment year 2004-05 in which he allowed the claim of the assessee. The Assessing Officer found the contentions of the assessee are not acceptable. According to the Assessing Officer, these expenses are incurred by the assessee for the new division and also incurred to identify new areas which can be explored for the purpose of production of oil and gas. According to the Assessing Officer, the expenses of the assessee are in the nature of preliminary expenses and are not related to any business activity carried on by the assessee. The Assessing Officer, however, admitted that the facts for the curre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal for Assessment Year 1993-94 directed the Assessing Officer to allow depreciation. 4. Being aggrieved by the order of the ld. CIT(A) the revenue is in appeal before us. 5. Ground No.1 reads as under:- "1. On the facts and in the circumstances of the case and as per law, the ld. CIT(A) erred in directing the Assessing Officer to allow the expenditure of Rs.5,76,42,862/- incurred by the assessee for exploration and production of oil and gases as revenue expenditure." 6. At the time of hearing the Ld. DR supports the order of the Assessing Officer. 7. On the other hand, the Ld. Counsel for the assessee while relying on the order of the ld. CIT(A) submits that this issue is covered in favour of the assessee by the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incur substantial amount of expenditure before submitting its bid if the assessee is not successful in obtaining bid, such expenditure is allowable as revenue expenditure. The Tribunal has held that merely because the assessee failed to secure a bid, the expenditure cannot be disallowed. The finding recorded by the tribunal is finding of fact. No question of law arises. Appeal is dismissed." In the absence of any distinguishing feature brought on record by the revenue we respectfully following the consistent view of the Tribunal and the decision of the Hon'ble Jurisdictional High Court decline to interfere with the order passed by the ld. CIT(A) on this account and accordingly the ground taken by the revenue is rejected. 9. Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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