9911796707
TMI Blog2018 (7) TMI 2224X X X X Extracts X X X X X X X X Extracts X X X X ..... All the appeals of the Revenue in respect of three independent assessees are directed against the respective orders of the Commissioner of Income Tax (Appeals) -3, Madurai, dated 16.05.2017 pertaining to assessment years 2008-09 and 2009-10. Since common issue arises for consideration in these appeals, we heard all these appeals together and disposing of the same by this common order. 2. The only issue arises for consideration in these appeals is whether the expenditure incurred by the assessee on the lease premises is a revenue expenditure or capital expenditure. 3. Shri V. Nandakumar, the Ld. Departmental Representative, submitted that all the assessees form part of RMKV group of concerns, which is engaged in retail trading in textile. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tribunal, this Tribunal by placing reliance on the judgment of Kerala High Court in Joyallukas India Pvt. Ltd. v. ACIT (2016) 282 CTR 551, found that the expenditure incurred by the assessee irrespective of creating enduring benefit or advantage even if it is profit earning effort, unless at the end of the term of the lease, the item on which the expenditure was spent could be retrieved by the assessee, it shall not amount to capital expenditure. The Kerala High Court reversed the decision of Cochin Bench of this Tribunal on identical issue. The Kerala High Court has also placed its reliance on the judgment of Apex Court in Empire Jute Co. Ltd. v. CIT (1980) 124 ITR 1. Therefore, according to the Ld. counsel, when the expenditure remains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure. This judgment of Kerala High Court was followed in the assessee's own case for assessment year 1995-96. Even though this Tribunal found an identical expenditure was revenue expenditure, the Assessing Officer simply ignored the order of this Tribunal by observing that the Department has not accepted the decision of ITAT and it was under challenge before the higher forum. For the assessment years 2002-03 and 2003-04 also the Tribunal found that an identical expenditure has to be allowed as revenue expenditure. In fact, the Tribunal placed its reliance on the judgment of jurisdictional High Court in Hari Vignesh Motors Pvt. Ltd. 6. We have carefully gone through the order of the CIT(Appeals). The CIT(Appeals), by placing relian ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
