9911796707
TMI Blog2014 (2) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ar ORDER Per Chandra Poojari, AM: This appeal by the Department is directed against the order of the CIT(A), Vijayawada dated 31.8.2012 for assessment year 2007 08. 2. The Revenue raised the following grounds of appeal: 1. The CIT(A) erred in law in granting relief to the assessee on the issue of rehabilitation expenses. 2. The CIT(A) erred in law in holding that rehabilitation expenses are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed to disallow the same on the ground that it constitutes capital expenditure. The assesse brought to the notice of the Assessing Officer that this issue has been decided in favour of the assessee by the order of the Tribunal in the assessee's own case for A.Ys. 2002 03, 2003 04 and 2004 05 vide its orders in ITA Nos. 1255/H/05, 1001/H/06 and 731/H/07 dated 24.9.2009. However, the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining activity. It is also an undisputed fact that the expenditure in question has been incurred by the assessee in order to discharge the statutory obligations, fettered to it as a prerequisite for carrying on the mining activity. The expenditure has been incurred by the assessee in the normal course of its regular activity of mining. It is also an undisputed fact that the assessee has incurred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such expenditure did not bring into existence any advantage of an enduring nature. The said decision of the Apex Court squarely applies to the facts of the present 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 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the Tribunal in assessee's own case for earlier assessment years (supra) in favour of the assessee by the co ordinate Bench. Being so, we do not find any 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. We are completely in agreement with the order of the CIT(A) and the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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