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TMI Blog2024 (6) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... t before the ld. CIT(A), the assessee made similar submission in his written submission as summarily made before us. CIT(A) on appreciation of facts, held that the land and other amenities which were forming part of project was handed over to the ultimate buyers and ownership was transferred to the society. The builder (assessee in the present case) no more enjoys the right to the property. The installation of transformers was not for the ultimate benefit of builder. The expenses were borne out of the receipt from ultimate beneficiaries. In such cases, the expenses like purchase of land and other expenses was just a work in progress for the assessee and not an asset with enduring benefits for the assessee. On the basis of such observation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital asset and hence the expenditure incurred was not in the nature of Revenue expenditure. 3. It is, therefore, prayed that the order the Ld. CIT(A) may kindly be set aside and that of the AO be restored. 4. The appellant craves leave to add, alter, amend and/or withdraw any ground(s) of appeal either before or during the course of hearing of the appeal. 2. Rival submissions of both the parties have been heard and record perused. The learned Senior Departmental Representative (ld. Sr.DR) for the revenue submits that though the tax effect involved in the present appeal is only Rs. 5,23,640/- which is less than the monetary limit of tax effect of Rs. 50.00 lakhs, determined by the CBDT vide Circular No. 17/2018 dated 08/08/2019 to file appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n his propounding various theories which is not at all relevant for determining the nature of expenditure. The assessee made such payment to Gujarat Electricity Board. The ownership of such transformer is always with the Gujarat Electricity Board, and no new asset is created in favour of assessee. Such expenses were incurred for the purpose of providing electricity to flat holder in the housing project which is basic amenities required before occupying the flat, which was incurred by assessee in his business activities. No right to personal use is enjoyed by assessee and all the rights in the project including the right to use such transformer, were transferred to the flat owners. No personal asset is created in favour of assessee. In the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was just a work in progress for the assessee and not an asset with enduring benefits for the assessee. On the basis of such observation, the ld. CIT(A) allowed relief to the assessee. We also in agreement with the contention of ld. AR of the assessee that the assessee has not got any personal benefit from such expenses. The ownership of such asset lies with the Gujarat Electricity Board or the electricity distributor company. No personal benefit of enduring in nature is received or enjoyed by assessee. Thus, we affirm the order of ld. CIT(A), resultantly, the appeal of revenue is dismissed. Considering the fact that we have dismissed the appeal on merit, therefore, giving finding on issue of tax effect have become academic. 5. In the resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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