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2014 (12) TMI 1156 - AT - Income TaxReopening of assessment - expenses incurred for development of certain products will give an enduring benefit to the assessee and same is in the capital field - CIT(A) deleted addition - Held that:- The assessee has incurred expenditure of ₹ 31.20 lacs on salaries, wages, stores & sapares, travelleing etc. No expenditure has been incurred on any asset of the nature fixed assets or capital in nature or which has resulted into any benefit of enduring nature. The expenditure had been incurred for improvement and enhancement of its existing business in the line of chemical manufacturing under the unity and control of same management with common funds etc. See Rama Synthetics India Ltd. Vs. CIT reported in (2009 (9) TMI 635 - Delhi High Court ) & CIT Vs. Priya Village Roadshows Ltd. reported in (2008 (5) TMI 142 - PUNJAB AND HARYANA HIGH COURT). CIT(A) is justified in deleting the disallowance of ₹ 31.2 lakhs - Decided in favour of assessee.
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