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TMI Blog2020 (11) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaking the project. The assessee owned 74% of the share capital of the SPV for which it had paid ₹ 7,40,000/-. However, the NHAI rejected the application to designate JSHL as the SPV. As a result, the SPV was wound up and since no consideration was received by the assessee on account of winding up of the SPV, the entire investment in JSHL was written off. In the instant case, the write off is nothing but write off of an expenditure on an abandoned project ; the project in question had inextricable link with the assessee s existing business and hence, the expenditure is allowable as revenue expenditure u/s 37(1) of the Act. On the basis of the above reasons, we delete the disallowance made by the AO. Payment of bonus - Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is an appeal filed by the assessee. The relevant assessment year is 2012-13. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-22, Mumbai [ in short CIT(A) ] and arises out of assessment completed u/s 143(3) of the Income Tax Act 1961, (the Act ). Though the case was fixed for hearing on 29.10.2020, neither the assessee nor its authorized representative appeared before the Tribunal on the above date. As there is non-compliance by the assessee, we are proceeding to dispose off this appeal, after examining the documents available on record and after hearing the Ld. Departmental Representative (DR). 2. The grounds of appeal filed by the assessee read as under : 1.1. The learned CIT (A) erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es by treating the same as premature. 3. Briefly stated, the facts of the case are that the assessee is a public limited company engaged in the business to develop, execute and manage infrastructure projects. It filed its return of income for the assessment year (AY) 2012-13 on 28.09.2012 declaring total income at Rs. Nil and current year loss of ₹ 5,10,98,379/-. As per the profit and loss account, the assessee had claimed an amount of ₹ 8,21,997/- as bad debt written off under the head Other Expenses . During the course of assessment proceedings, the assessee filed before the AO the following details : Write off of Investment in Jetpur Somnath Highways Ltd. on account of winding up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. We find that the assessee was awarded a project by the National Highways Authority of India ( NHAI ) to design, engineer, procure, construct, maintain, manage, operate and collect toll on Jetpur Somnath section of National Highway on Design, Build, Finance, Operate and Transfer (DBFOT) basis. The project was required to be executed through a special purpose vehicle ('SPV'). The assessee decided to conduct the project through an existing nonoperational company of the Group (M/s IDFC Capital Co Ltd which was renamed as JSHL) and designated the same as the SPV required for undertaking the project. The assessee owned 74% of the share capital of the SPV for which it had paid ₹ 7,40,000/-. However, the NHAI rejected the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,08,975/- made by the AO be affirmed. 4.3 We have heard the Ld. DR and perused the relevant materials on record. In the instant case, the assessee had set up a Special Purpose Vehicle (SPV) i.e. Dheeru Powergen Ltd. to implement 1050 MW (3x350 MW) coal based thermal power plant at District Korbar, in the State of Chhattisgarh. That in spite of all the efforts put in by the assessee, the project could not take off because of many limitations. Finally, the assessee decided in its Board Meeting held on March 7, 2012 to exit the non-coal business. In such a situation, there is merit in the contentions of the assessee before the Ld. CIT(A) that Mr. Pradeep Singh(Group head of public sector initiatives) having experience of 34 years was autho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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