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2010 (10) TMI 562 - AT - Income TaxDisallowed - Exploration and production of oil and gases expenditure - the assessee is engaged in the business of operation of rigs for extraction of oil and undertaking other oil related activities - It is further recorded by the Tribunal that in the interest of assessee's business and in continuation of the business carried on by it, the assessee had to explore the chances of development in the field of oil exploration for which it had to submit itself for bidding and tenders - The tribunal has held that submitting tenders and bids in the field of oil exploration is a highly sophisticated technical task for which the assessee company had to incur substantial amount of expenditure had to incur substantial amount of expenditure before submitting its bid if the assessee is not successful in obtaining bid, such expenditure is allowable as revenue expenditure - The Tribunal has held that merely because the assessee failed to secure a bid, the expenditure cannot be disallowed - Decided in favour of assessee. Depreciation - the status of assessee company as on the date of transfer of the asset is 100% subsidiary company of M/s. Essar Gujarat Ltd" - Tribunal order for the Assessment Year 1993-94 in assessee's own case wherein the claim of the assessee was decided in the favour of the assessee - The ld. CIT(A) following the said order of the Tribunal directed the Assessing Officer to re-compute the depreciation in the light of the order of the Tribunal - Decided in favpor of assessee.
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