9911796707
TMI Blog2015 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and in Khaitan Paper & Industries Ltd (2004 (4) TMI 15 - CALCUTTA High Court ), the question no.(i) is answered in the negative, against the Revenue and in favour of the assessee. Expenditure incurred for project expenditure - AO disallowed the expenditure as it was not related to the current year’s income - CIT(A) and ITAT allowed claim - Held that:- In our view since the project was abandoned in the assessment year 1995-96 and the entire expenses was written off during the said assessment year, the issue stands covered by the judgment in Binani Cements [2015 (3) TMI 849 - CALCUTTA] wherein it was held that “The decision to abandon the project was the cause for claiming the deduction. The decision was taken in the relevant year. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Adv. This appeal, under section 260A of the Income Tax Act, 1961 (for short the Act ), has been preferred by the appellant against the order dated 30th April, 2004 passed by the Income Tax Appellate Tribunal, Kolkata in ITA Nos. 915 and 916 9Kol) of 1999 for the assessment years 1995-96 and 1996-97. The appeal was admitted on the following substantial questions of law: (i) Whether the I.T.A.T. erred in law in reversing its own ex parte order passed in the matter based on the identical issue and existing facts and whether such change of opinion is sustainable in law? (ii) Whether the Income Tax Appellate Tribunal was justified in allowing expenditure incurred for project expenditure for those period when the project was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income-tax; (2005) 148 Taxman 326 (Cal), as the settled position of law is the Tribunal has the power to restore and rehear an appeal already disposed of on merits and as in the instant case it is evident from the documents filed that the assessee was prevented by sufficient cause from not appearing before the Tribunal, the Tribunal was justified in recalling the order and rehearing the appeal. Let a copy of the Miscellaneous Petition under section 254(2) of the Act filed before the Tribunal, furnished be kept on record. Admittedly Paper Book filed by the appellant does not contain the Miscellaneous Petition filed by the respondent before the Tribunal for recalling the order dated 21st February, 2003 and the order passed thereon. As it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a prudent businessman had written off the entire balance expenditure, the Tribunal was justified in confirming the order of the CIT(A). Since the Assessing Officer while disallowing the claim held that there should be direct nexus between the income and expenses of that particular year, as it is evident from the order of the CIT rejecting the stand of the Assessing Officer that in the assessment year 1995-96 this undertaking had a turnover of more than ₹ 99 lakhs, the Tribunal was justified in allowing the deduction. It appears from the order of the Assessing Officer that the assessee had submitted that as the project was not making profit, it was abandoned. The entire expenses were written off during the year. However the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the question no.2 is answered in the affirmative, against the revenue and in favour of the assessee. So far as the question no.3 is concerned, we are of the view that since section 43B of the Income Tax Act deals with certain deductions to be made on actual payment, that is payment of tax, duty, cess or fee, or any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of the employees or other deduction as referred to in section 36 or any sum payable by the assessee as interest on any loan or advance or any sum payable by the assessee as an employee in lieu of any leave at the credit of his employer or any sum payable as inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
