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TMI Blog2014 (2) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... tage of an enduring nature - The evacuation from the danger zone has been done in accordance with the lease agreement and in discharge of the statutory obligations imposed, as a pre- requisite for the assessee to carry on the mining operations on the lease hold lands - There was no infirmity in the order of the CIT(A) in holding that rehabilitation expenditure incurred by the assessee is revenue expenditure and it is not a capital expenditure – the order of the CIT(A) upheld – Decided against Revenue. - ITA No. 1839/Hyd/2012 - - - Dated:- 21-1-2014 - Shri Chandra Poojari And Smt. Asha Vijayaraghavan,JJ. For the Appellant : Sri D. Sudhakar Rao For the Respondent by: Sri C.S. Subrahmanyam Sri V. Shiv Kumar ORDER Per Chand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA Nos. 1255/H/05, 1001/H/06 and 731/H/07 dated 24.9.2009. However, the Assessing Officer disallowed the expenditure on the ground that the order of the Tribunal was not received by him and that the matter is subjudice. 4. On appeal, the CIT(A) decided the issue in favour of the assessee by placing reliance on the order of the Tribunal in assessee's own case for A.Ys. 2002 03, 2003 04 and 2004 05 dated 24th September, 2009 in ITA Nos. 1255/Hyd/05, 1001/Hyd/ 06 and 731/Hyd/07, wherein the Tribunal held as follows: "8. We have considered the rival submissions and perused the material available on record. We have also gone through the detailed written arguments field by the assessee and other material on record and in the light of case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case, since the evacuation from the danger zone has been done in accordance with the lease agreement and in discharge of the statutory obligations imposed, as a pre- requisite for the assessee to carry on the mining operations on the lease hold lands. The case-law relied on by the Revenue, on the other hand, is clearly distinguishable, in as much as in all those cases, the assessee has acquired the property, in relation to which the expenditure in question has been incurred. In that view of the matter, we accept the contentions of the assessee on this issue, and direct the assessing officer to treat the danger zone expenditure as of revenue nature, and allow the same accordingly. As a consequence, the assessing officer shall of course, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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