9911796707
TMI Blog2019 (10) TMI 1573X X X X Extracts X X X X X X X X Extracts X X X X ..... specified business. There is no condition of any date or year of commencement of specified business. However, in the second part, it has been provided that if such an expenditure has been incurred prior to the commencement of business and has been duly capitalized in the books of account, the claim will be allowed in the year in which the assessee commences operations of his specified business. There is neither any overlapping nor any contradiction in the aforesaid provision. The assessee is covered in the first part i.e. the assessee has incurred the expenditure on the specified business during the year in which operations of his business of warehousing were already going on. No justification on the part of the lower authorities in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , copy of the said order was furnished which is placed on record. 4. The Ld. Sr. DR although supported the orders of the authorities below but could not controvert the aforesaid contention of the Ld. Counsel of the Assessee. 5. We have considered the submissions of both the parties and perused the material available on the record. In the present case it is noticed that a similar issue having identical fact was a subject matter of the assessee s appeal for the A.Y. 2011-12 to 2014-15 in ITA No. 239/Chd/2016 others, wherein the issue has been decided in favour of the assessee and the relevant findings have been given in para 10 to 14 which read as under: 10. Now coming to the issue on merits taken by the assessee vide ground Nos. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture of capital nature incurred, wholly and exclusively, for the purposes of any specified business carried on by him during the previous year in which such expenditure is incurred by him: Provided that the expenditure incurred, wholly and exclusively, for the purposes of any specified business, shall be allowed as deduction during the previous year in which he commences operations of his specified business, if- (a) the expenditure is incurred prior to the commencement of its operations; and (b) the amount is capitalized in the books of account of the assessee on the date of commencement of its operations. 12. A perusal of the above provisions of Section 35AD of the Act reveals that assessee is eligible to claim deduction in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the year in which operations of his business of warehousing were already going on. In view of this, we do not find any justification on the part of the lower authorities in denying the deduction to the assessee u/s 35AD of the Act. This ground is, accordingly, allowed in favour of the assessee. 14. In view of this, the legal grounds relating to the reassessment are decided against the assessee whereas the grounds taken on merits regarding the allowability of the claim of deduction u/s 35AD are allowed in favour of the assessee. So respectfully following the aforesaid referred to order dt. 19/03/2019 in assessee s own case for the A.Y. 2012-13 in ITA No. 239/Chd/2016, the present case is remanded back to the file of the A.O. to be de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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