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2014 (2) TMI 364 - ITAT HYDERABADNature of expenses – Revenue or capital - Relief granted on rehabilitation expenses – Held that:- The expenditure has been incurred by the assessee in the normal course of its regular activity of mining - the assessee has incurred the expenditure in relation to the property in respect of which it has only leasehold rights - The expenditure incurred by the assessee for shifting the railway station, track, etc. i.e., to remove an obstruction to facilitate the business of mining, in accordance with the terms of lease, was held to be of revenue nature - such expenditure did not bring into existence any advantage of an enduring nature - The evacuation from the danger zone has been done in accordance with the lease agreement and in discharge of the statutory obligations imposed, as a pre- requisite for the assessee to carry on the mining operations on the lease hold lands - There was no infirmity in the order of the CIT(A) in holding that rehabilitation expenditure incurred by the assessee is revenue expenditure and it is not a capital expenditure – the order of the CIT(A) upheld – Decided against Revenue.
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