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2019 (4) TMI 1855 - ITAT AHMEDABADDisallowance of Project Facilities Expenses - deduction u/s. 80IA - HELD THAT:- On verification of the ledger account of Project Facilities Expense, it is noticed that the assessee has debited under the head Project Metal Crass Barrier Expense. The expenditure incurred for project metal crass barrier is a contractual obligation to be fulfilled by company as per Schedule-B of the concession agreement entered in to with NHAI. Company does not have right of any reimbursement or claim of money from NHAI for the said facilities. As these project facilities are required to be built up on the national highway owned by government, Management is of opinion that these project facilities do not create any assets or benefit of enduring nature and assessee/ appellant made expenses for safety barrier pavement marking, traffic signal etc. as per term and agreement of the contract with the NHAI. A.O. disallowed the claim of the appellant on the ground that above said amount was spent in earlier year and not in the year under consideration. In this case, the rate of tax are same as compared to earlier year and there is no loss to the revenue. Delhi High Court in the case of Vishnu Industrial Gases P. Ltd. vs. CIT [2008 (5) TMI 636 - DELHI HIGH COURT] which was followed in the case of CIT vs. Nagri Mills [1957 (9) TMI 30 - Bombay High Court] wherein it is held that “where the department had not disputed that the expenditure was deductible in principle but was only disputing the year in which the deduction could be allowed. Held, castigating the department, that as the tax rates were the same in both years, the department should not fritter away its energies in raising questions as to the year of deductibility/taxability. - Decided against revenue
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