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TMI Blog2015 (8) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee as NPV to enable the assessee to carry on its mining business is revenue in nature, which is allowable as business expenditure under section 37(1) of the Act. - Decided in favour of assessee. - I.T.A No.192/Kol/2011 - - - Dated:- 2-2-2015 - Shri Mahavir Singh Shri Shamim Yahya, JJ. For the Appellant : Shri Debasish Roy, JCIT For the Respondent : Shri Subash Agarwal, Advocate ORDER Shamim Yahya (Accountant Member).- This appeal by the Department is directed against the order of the learned Commissioner of Income-tax (Appeals)-VI, Kolkata dated November 4, 2010 and pertains to the assessment year 2007-08. 2. The grounds of appeal read as under : 1. That on the facts and circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvironmental/ecological balance in the surrounding area of mine as per need and agreement with the Government of India. 3.1. The assessee claimed that this expenditure was revenue expenditure. The Assessing Officer did not accept this argument of the assessee. He was of the view that the net present value (NPV) was actually an amount which the assessee paid to the Forest Department for transfer of forest land to non-forest uses, i.e., mining. The payment was to be made by each user agency towards regeneration of forest for diversion of forest to non-forest use. The NPV was levied on the user agencies converting forest land to non-forest purposes as a one time levy to contribute at a time for repairing the damage caused earlier and whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is seen that the assessee already had mining lease for Manganese ore in village Konthat- Koira in the district of Sundergarh, Orissa since long. This shows that the assessee did not get any fresh right to mining by making this payment under the order of the Supreme Court. The assessee was already running a mining business for quite some time and during the course of business some payment was required to be made by it in pursuance of the above referred Supreme Court order. This payment neither gave the assessee any fresh right to acquire any capital asset nor any extension of right. On the other hand, had this payment not been made by the assessee would have been liable for contempt and stoppage of its mining operations. So this payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax Act. Against the above order the Revenue is in appeal before us. 4. We have heard both counsel and perused the records. Learned counsel of the assessee submitted that the issue is squarely covered in favour of the assessee by the decision of the Income-tax Appellate Tribunal, Kolkata Bench in the case of group concern of the assessee in the case of Asst. CIT v. Rungta and Sons (P) Ltd. in I. T. A. No.933/Kol/2009 vide order dated August 5, 2011. The learned Departmental representative fairly agreed that identical issue has been decided by the Tribunal in favour of the assessee. 4.1. We have carefully perused the records. We find that the Tribunal in the above decision has elaborately considered the issue. The Tribunal had fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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