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2014 (7) TMI 1085 - HC - Income TaxRevision u/s 263 - Compensation paid as afforestation charges claimed as deduction – nature of expenditure - Held that:- The Tribunal rightly concluded that the payment is towards the loss of forestry on the forest land that has been diverted and no forest asset for the assessee is created by making payment of net profit value – The assumption on which the Commissioner of Income Tax proceeded is wholly erroneous. The Tribunal concluded that the order of the Assessing Officer was a possible view of the matter and in the given facts and circumstances, could not have been said to be erroneous and prejudicial to the interest of the revenue, requiring interference under Section 143(3) The expenditure incurred is to be for commercial expediency and that it should therefore not be treated as expenditure of capital nature – no substantial question of law arises for consideration – Decided against revenue.
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