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TMI Blog2014 (2) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... eal reads as under:- "That the ld.CIT(A) IX erred both in facts and in law in sustaining the disallowance of interest of Rs.4,78,243/- computed on old outstanding advances without appreciating that the advances given were for bonafide business consideration and commercial expediency." 4. At the time of hearing before us, both the parties fairly agreed that in the immediately preceding year i.e. AY 2002-03 vide order dated 11th April, 2008 in assessee's own case in ITA No.1651/Del/2006, this issue is set aside to the file of the Assessing Officer and therefore, for the year under consideration also, this issue may be restored to the file of the Assessing Officer. In view of the above submission of both the parties as well as keeping in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill get the benefit of the expenditure during the entire period of lease which was 9 years and 9 months, therefore, the above expenditure was treated as deferred revenue expenditure and 10% thereof was claimed as deduction year after year. Assessment year 2001-02 was the first year in which such deduction was claimed and it was allowed by the Revenue. Again in AY 2001-02, the expenditure was allowed by the Assessing Officer. That in AY 2002-03, the expenditure was disallowed which was sustained by the ITAT. In AY 2003-04, again the expenditure is disallowed and the matter is before the ITAT, i.e., the present appeal. Thereafter, in all the subsequent years, the Revenue has allowed the expenditure. Thus, out of the ten years, except in AY 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urred or if the assessee wants to spread the expenditure over the period of years which can be allowed if the principle of matching concept is satisfied. It is stated by the learned counsel that in the case of the assessee, there is no dispute that the principle of matching concept is satisfied because the benefit of the expenditure incurred in the year 1999-2000 would be available throughout the lease period. He, therefore, submitted that in view of the above decision of Hon'ble Jurisdictional High Court, the 1/10th of the renovation expenditure claimed by the assessee as deferred revenue expenditure should be allowed. 8. Learned DR, on the other hand, stated that the issue is squarely covered in favour of the assessee by the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -03 & 2003-04, the Revenue took a different stand and disallowed the expenditure. Again in the subsequent year, the expenditure is not disallowed. The ITAT has upheld the disallowance of 1/10th of renovation expenses in AY 2002-03. However, the decision of ITAT is dated 11th April, 2008 while the decision of Hon'ble Jurisdictional High Court in the case of Industrial Finance Corporation of India Ltd. (supra) is dated 4th September, 2009. Therefore, the benefit of the above decision of Hon'ble Jurisdictional High Court was not available to the ITAT while deciding the issue for AY 2002-03. In view of the above, we deem it proper to set aside the orders of authorities below on this point and restore the matter to the file of the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in restricting the addition on account of consultancy charges to Rs.15,95,225/- as against Rs.47,39,225/- made by the Assessing Officer." 14. The facts of the case are that during the accounting year relevant to assessment year under consideration, the assessee claimed the deduction in respect of consultancy charges of Rs. 47,39,225/- paid to International Caterers Pvt.Ltd. The Assessing Officer disallowed the same. On appeal, learned CIT(A) restricted the disallowance to the extent of Rs. 15,95,225/-. The Revenue is aggrieved with the relief allowed while the assessee now by way of an additional ground has challenged the disallowance sustained. 15. At the time of hearing before us, it was stated by the learned counsel that the omission o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer and without allowing any opportunity to the Assessing Officer to express his opinion with reference to the said decision. He, therefore, submitted that the order of learned CIT(A) should be reversed and the disallowance made by the Assessing Officer should be restored or, in the alternative, the matter should be set aside to the file of the Assessing Officer for examination afresh in the light of the decision of Hon'ble Jurisdictional High Court. 19. The learned counsel for the assessee stated that the Assessing Officer disallowed the entire claim of consultancy charges on the ground that the assessee is not liable to make any payment to International Caterers Pvt.Ltd. because they have not provided any services. That Internati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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