Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 118 - HC - Income TaxNature of expenses - Expenses incurred for replacement of membrane cells-II disallowed - ITAT deleted the addition treating the same as capital expenditure by following the rule of consistency - Held that:- We do not find that the approach on the part of the department to take up a different stand in absence of any material or valid reason could be said as justified. The consistency expected on the part of the Revenue in taxation matter is not unknown but rather is expected so as to make the Assessee aware about the taxable liability. We do not mean to say that if the legal position is changed or there is cogent material available, the Revenue cannot take a different stand or make a valid departure but at the same time, in absence of any such circumstances, namely, any material leading to different conclusion or change in legal position, the consistency on the part of the Revenue should be adhered to. The attempt to contend that life of membrane would be spread over from 3 to 5 years or that the amount involved for replacement of membrane is huge and, therefore, the departure on the part of the Revenue could be said as justified, in our view, cannot be countenance for two reasons. One is that the amount involved would not make difference for chargability of the tax but the nature of expenditure would be relevant for the chargability of tax. It hardly matters whether the amount is more or less. Further, on the aspect of life of the membrane, nothing is referred to by the A.O. nor by C.I.T. (Appeals) that earlier, such aspect, namely, life of the membrane spread over from 3 to 5 years was not considered or it had missed or otherwise. - Decided in favour of the Assessee.
|