2011 (11) TMI 150

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..... gular books of account, thus addition cannot be made as undisclosed income. Further, whether the expenditure is capital or revenue is relevant for the purposes of regular assessment u/s 143(3) and cannot be a subject matter of block assessment proceeding. - The questions proposed cannot be termed as substantial questions of law. Accordingly the appeal is dismissed. - Decided against the revenue.
MR BADAR DURREZ AHMED AND MS VEENA BIRBAL, JJ. Represented By: Mr Kanval Sawhney, Sr. Standing Counsel with Mr Amit Srivastava, Advocate For the Appellant VEENA BIRBAL, J 1. This appeal is directed against the Tribunal's order dated 19th May, 2006 for the block assessment period 1.4.1988 to 14.10.1998. The main issue raised is in respect of t .....

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..... gus purchases and remanded the matter back to the Assessing Officer in respect of said addition for deciding afresh after giving opportunity to the assessee vide its order dated 28.02.2001. Aggrieved with the said order, the Revenue preferred an appeal before the Tribunal. All the deletions made by the CIT(A) were challenged before the Tribunal. The Tribunal vide its order dated 19.05.2006 observed that each and every issue has been discussed in detail by CIT(A). The Tribunal in its impugned order had dealt with the deletions made by the CIT(A) and did not interfere with the decision of CIT(A). 4. Aggrieved with the same, the present appeal is filed. Nine substantial questions of law i.e., para 2 (a) to (i) of the appeal have been proposed .....

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..... he books of accounts by that time. This is what the CIT (A) has noted in para 27 of his order by saying that the case of the AO is not that these were not made in the regular books of account. Further, as rightly pointed out by the CIT (A), a debatable question whether the expenditure is capital or revenue in nature cannot form the subject matter of block assessment, though it may be disallowed as capital expenditure in the regular u/s 143(3) if the facts warrant the same. Quite appear from these expenditure of Rs.14.79 lacs on invertors has not been claimed at all as revenue expenditure, but has been capitalized and the entries in the balance sheet support the same. For these reasons, we are of the view that the CIT(A) committed no error i .....

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