2012 (10) TMI 368 - ITAT, DELHI

Reopening of assessment u/s 147 - whether wooden shuttering and centering were capital in nature - Held that:- During the course of original assessment proceedings, issue had been examined by the AO in para 4 of the assessment order after raising queries and amount was allowed as revenue expenditure. - the AO, following his orders of earlier years has consistently been treating the expenditure on wooden centering and scaffolding as revenue in nature on consumption basis and capitalizing the expenditure of steel shuttering & centering while allowing depreciation thereon - thus AO reopened the assessment in relation to wooden shuttering and centering expenses merely on the basis of change of opinion and no ‘tangible material ’ was brought on record before initiating act ion u/s 147 - in favour of assessee.

Wooden shuttering and centering - Revenue v/s capital - Held that:- As in the preceding years starting from AY 1998-89 until assessment year 2003-04, the claim of the assessee has been accepted treating the amount incurred on wooden shuttering and centering, revenue in nature, thus following the principles of consistency, the CIT(A) allowed the claim for deduction of expenditure on wooden shuttering and centering on consumption basis as revenue expenditure - in favour of assessee.