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2013 (12) TMI 1412 - AT - Income TaxDeletion on account of expenditure claimed towards shifting of plant and machinery – Held that:- The expenditure incurred was towards shifting of plant, machinery, equipments files and records, etc., to the second location at Balanagar consequent upon sale of its industrial land at Kavadiguda where these plants and machineries were earlier located - No new plant or machinery has been set up by the assessee - The Assessing Officer has not given any reason as to why he considers the expenditure as capital in nature - during the remand proceeding though the assessee has produced all evidences with regard to the expenditure incurred towards shifting, the Assessing Officer has not offered any comment why he considers the expenditure as capital in nature - the expenditure incurred was towards shifting existing plant, machinery equipments, records, etc. - The incurring of expenditure did not result in any benefit of enduring nature to the assessee – Thus, the expenditure incurred is revenue expenditure and as such is allowable. Relief on account of Computation of book profit by AO u/s 115JB(2)(vii)of the Act – Held that:- The period for which the assessee becomes entitled for deduction under the aforesaid provision commences from the assessment year in which it becomes a sick industrial company and ends in the assessment year during which the net worth becomes equal to or exceeds the accumulated losses - for the first time the net worth has exceeded the accumulated losses during the impugned assessment year - the provision contained in clause (vii) to Explanation 1 of section 115JB is very much applicable to the assessee - the assessee is entitled to claim deduction under the provision - the AO has not correctly interpreted the provision of the Act – the letter relied by AO reveals the fact that nowhere the Board has made any adverse comment with regard to the assessee's claim of deduction under clause (vii) to Explanation 1 of section 115JB(2) for the impugned assessment year – Decided against Revenue.
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