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TMI Blog2023 (3) TMI 1527X X X X Extracts X X X X X X X X Extracts X X X X ..... sted investors - Assessee prayed to remand the matter to the file of AO to examine whether assessee would be entitled for amortization of expenses u/s 35D - HELLD THAT:- As per Section 35D of the IT Act, where an assessee incurs any expenditure for extension of his business, he shall be entitled for amortization with certain preliminary expenses. Though Shri. Sanmathi opposed the contention urged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the order dated 27.06.2018 in ITA No. 1557/Bang/2016 passed by the ITAT [Income Tax Appellate Tribunal] has been admitted to consider seven questions of law. 2. Heard Shri. E.I. Sanmathi, learned Standing Counsel for the Revenue and Shri. R.V. Easwar, learned Senior Advocate for the assessee. 3. Shri. Sanmathi submitted that questions No. 1 and 4 have been considered in ITA No. 817/2018. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Tribunal is right in law in setting aside the disallowance of legal and professional charges by holding that the same is in the nature of capital expenditure even though the assessing authority rightly treated the same as revenue expenditure since the same was related to raising of fresh equity and to study feasibility of expansion and, as such, it gave enduring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act ] , 1961 submitted that assessee must be allowed deduction of an amount equal to one-tenth of such expenditure for each of ten successive previous years where the assessee makes expenditure in connection with extension of undertaking. He submitted that the Assessing Officer, the CIT (A) and the ITAT have not adverted to this aspect. Accordingly, he prayed to remand the matter to the file of A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be defeated on technical grounds. However, the Revenue must be given an opportunity to contest assessee s claim. 12. In that view of the matter, we deem it appropriate to remand the matter to the file of the Assessing Authority to examine assessee s plea with regard to Section 35D of the IT Act. 13. Hence, the following: ORDER (a) Appeal is allowed. (b) The matter is remitted to the Assessing Au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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