2018 (12) TMI 704

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..... r. P.C. Tripathi i/by Raj Darak for the Respondent   P.C.: 1. Income Tax Appeal No. 883 of 2016 is not on board. As the said appeal involves the same assessee and identical question of law as in Income Tax Appeal No. 842 of 2016 which is on board today, by consent of both the learned counsel, we have taken Income Tax Appeal No. 883 of 2016 on board along with Income Tax Appeal No. 842 of 20 .....

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..... the assessee had in its books of accounts treated the expenditure as "capital work-in-progress" and secondly, according to the Revenue, the expenditure was in the nature of 'pre-operative expenditure' and therefore, should have been capitalized. 4. The Tribunal, by the impugned order, overruled both the objections of the Revenue. With respect to the accounting entries, the Tribunal referr .....

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..... e said appeal came to be dismissed by this Court by judgment dated 5.7.2017. 6. In our opinion, therefore, the Tribunal correctly held both the issues in favour of the respondent - assessee. Mere accounting entires in the books of accounts would not decide the taxability of the amount in question. The Tribunal also noted that the expenditure was incurred for expansion of existing business. Thus, .....

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