2017 (10) TMI 1457

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..... "1. Whether on the facts and circumstances of the case, the Tribunal was justified in holding the expenses claimed as compensation for rock phosphate of Rs. 9,83,22,430/- as revenue expenditure, inspite of the fact that the assessee by virtue of said expenditure has acquired benefits of enduring nature and were thus, not allowable as revenue expenditure? 2. Whether on the facts and circumstances of the case, the Tribunal was justified in holding the compensation of Rs. 1,27,07,572/- paid to land owners/ farmers for using their land for extraction of minerals, as revenue expenditure, inspite of the fact that the assessee by virtue of said expenditure has acquired right of enduring nature and were thus, not allowable as revenue expendi .....

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..... n D.B. Income Tax Reference No.1/2000 (CIT, Jaipur vs. Rajasthan State Mines & Minerals Ltd.) decided on 15.9.2016 wherein it has been held as under:- "Taking into consideration the fact initially the Corporation has not accepted the liability, therefore, the observations which are made by the Tribunal for the year 1991-92 were in the peculiar facts where the liability was not accepted but subsequently for the year 1992- 93, the Corporation has accepted the liability which was shown in the books of account and in view of the matter additions made by the tribunal for the relevant year would not be applicable in the changed circumstances. Since, they accepted the liability, the resolution which is sought to be passed on 28.8.1992 was administ .....

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..... ding as under:- He relied upon the decision of Hon'ble Supreme Court in the case of Alembic Chemical Works Co. Ltd. vs. Commissioner of Income Tax, reported in (1989) 177 ITR 0377 and Empire Jute Co. Ltd. vs. Commissioner of Income Tax, reported in (1980) 124 ITR 0001 and contended that under mercantile system, the expenses were shown in the year 1992-93 and even while assessment order was passed for the year 1991- 92, the assessee was made clear that he is accepting the liability and he further contended that he will not make payment which was made by the State Government for the expenditure incurred for the survey which is being done. Therefore, the Corporation had no other option to make payment which has no capital value. Taking int .....

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