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TMI Blog2015 (9) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... er account on page 28 of the paper book, further amount of ₹ 1,68,455/- was debited to pre-operative expenses during Financial Year 2008-09 with the same narration and total of both these amounts comes to ₹ 4,46,984/- which was written off by the assessee during the Financial Year 2009-10 with the narration “losses booked as unit closed”. Hence, it is seen that true nature of expenses is not available in paper book. None out of seven judgments cited by Ld. AR of the assessee is rendering any help to the assessee in the present case. We have also seen that the assessee has not provided the details and nature of expenses incurred in the present case. Therefore, we do not find any reason to interfere in the order of the Ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Industrial Development Corporation Ltd. Vs. DCIT 292 ITR (AT) 268 (Chd.) (SB) 3. Agrani Telecom Ltd. Vs. ACIT 150 ITD 34 (Mum) 4. CIT Vs. Tata Robins Fraser Ltd. 78 DTR (Jharkhand) 22 5. Idea Cellular Ltd. Vs. Addl. CIT 65 SOT 15 (Mum) (URO) 6. CIT Vs. Graphic India Ltd. 221 ITR 420 (Cal) 7. Bengal Assam Investors Ltd. Vs. CIT 142 ITR 156 (Cal.) 4. None was present on behalf of the Revenue. Hence, the appeal was heard ex-parte qua the Revenue. 5. We have considered the submission of Ld. AR of the assessee. 6. The brief facts of the case till the assessment stage are noted by the CIT(A) at page 12 of his order and the same are reproduced as under:- In these grounds of appeal the appellant has objected to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the I. T. Act. Regarding the nature of expenses, the assessee has filed copy of the ledger account on page 29 of the paper book and as per the same, an amount of ₹ 278,529/- was debited to pre operative expenses account during Financial Year 2007-08 with the narration that expenses are regarding the work in progress of Lifestyle Fabric as pre-operative expenses of new project. Similarly as per ledger account on page 28 of the paper book, further amount of ₹ 1,68,455/- was debited to pre-operative expenses during Financial Year 2008-09 with the same narration and total of both these amounts comes to ₹ 4,46,984/- which was written off by the assessee during the Financial Year 2009-10 with the narration losses booked as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urvey Expenses and recovery of such expenses except the abandoned projects where no recoveries was made was credited to the head Receipts on Account of Projects Matured in the years of maturity of respective projects and this policy has been adopted because promotion of project was a major activity of the assessee corporation. Recovery, if any, made in the subsequent years on account of abandoned projects is credited to the miscellaneous income in the year of actual receipt. Under these facts, it was held by the special Bench of the Tribunal that such expenses on survey of project is revenue expenditure. In our considered opinion, this decision of Special Bench of the Tribunal is not applicable in the present case because the facts are d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat case, the dispute was regarding litigation expenses incurred in connection with a scheme of amalgamation which did not materialize and it was held by the Hon ble Calcutta high Court that such expenditure is capital expenditure. Hence, this judgment is in fact against the assessee and hence, not rendering any help to the assessee in the present case. 12. The next judgment on which reliance has been placed by the Ld. AR of the assessee is a judgment of Hon ble Jharkhand High Court rendered in the case of CIT Vs. Tata Robins Fraser Ltd. (Supra). In Para 16 of this judgment, the nature of expenses have been taken note of which included a fee of ₹ 2,57,335/- paid to the Architect and some expenses of ₹ 46,379/- incurred on old ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lutions is very much linked with the existing of business of transportation service. But in the present case, the new unit is not so linked with existing business and therefore, this Tribunal decision is also not rendering any help to the assessee in the present case. 14. As per above discussion, we have seen that none out of seven judgments cited by Ld. AR of the assessee is rendering any help to the assessee in the present case. We have also seen that the assessee has not provided the details and nature of expenses incurred in the present case. Therefore, we do not find any reason to interfere in the order of the Ld. CIT(A). 15. In the result, the appeal of the assessee is dismissed. (Order was pronounced in the open court on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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