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TMI Blog2020 (4) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... re by the Assessing Officer is that the eligible income under section 80IA of the Act would get enhanced and the assessee would be entitled to deduction thereof under section 80IA of the Act. The Tribunal was, therefore, justified in coming to the conclusion that the issue was tax neutral and upholding the order passed by the Commissioner (Appeals). It not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to give rise to question of law, much less, a substantial question of law warranting interference. - R/TAX APPEAL NO. 744 of 2019 - - - Dated:- 3-12-2019 - MS. HARSHA DEVANI AND MS. SANGEETA K. VISHEN JJ. Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer was of the view that, in terms of the assessee's own statement, the expenditure claimed was revenue in nature. The Assessing Officer noticed that there was an opening balance of ₹ 4,10,06,609/- and during the year, the assessee had incurred expenditure mainly on labour charges of ₹ 73,65,345/- and failed to offer any convincing explanation for not claiming such expenditure in the year in which it was incurred. According to the Assessing Officer, as the expenditure of ₹ 4,10,06,609/- was incurred in the earlier year, the assessee had not claimed the same with a view to obtain undue benefit of claiming deduction under section 80IA of the Act by maintaining books of account to suit the assessee's clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as further contended that the Assessing Officer had not disputed that in principle, the expenditure was deductible, but was only disputing the year in which the deduction was claimed. The assessee had alternatively also contended that the assessee is engaged in the business of operating and maintaining toll road as per the concession agreement with the National Highway Authority of India and it is eligible to get deduction under section 80IA(4) of the Act for profits and gains derived from such eligible business. Therefore, the Assessing Officer cannot restrict the deduction under section 80IA of the Act only to the extent as claimed by the assessee at the time of filing return of income and has erred in not extending the benefit to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.3 From the facts, as emerging from the record, it is evident that the sole ground on which the Assessing Officer has sought to disallow the expenditure of ₹ 4,10,06,609/- is that, such expenses were incurred in the previous year and not in the current year. It is an admitted position that the assessee was entitled to deduction under section 80IA of the Act. The consequence of disallowance of expenditure by the Assessing Officer is that the eligible income under section 80IA of the Act would get enhanced and the assessee would be entitled to deduction thereof under section 80IA of the Act. The Tribunal was, therefore, justified in coming to the conclusion that the issue was tax neutral and upholding the order passed by the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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