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2015 (4) TMI 504 - HC - Income TaxClaim of revenue expenditure in the course of assessment proceedings without revising the return of income (a) - Claim of Lease rent paid during the period in which production not commenced (b) - Allowance of interest on hire purchase (c) - Held that:- Following judgment of Arvind Products Ltd.[2010 (3) TMI 828 - Gujarat High Court] , we answer question (A) in affirmative and held that the Appellate Tribunal was right in law in confirming the order of the CIT(A) allowing the claim of ₹ 2,38,77,468/as revenue expenditure made for the first time in the course of assessment proceedings by filing a letter dated 01.02.1994 without revising the return of income. Following judgment of Nirma Ltd.[2014 (10) TMI 388 - GUJARAT HIGH COURT], We, therefore, answer question (B) in affirmative and in favour of the assessee and against the Revenue, holding that the Appellate Tribunal was right in law in holding that lease rent paid under an arrangement with Gujarat Lease and Financials Ltd. for imported machinery and equipments for establishing a new Soda Ash Plant by the assessee, manufacturing caustic soda, for the period the new plant had not commenced production, was revenue expenditure. Following judment of Gujarat Alkalies and Chemicals Ltd. [2008 (2) TMI 11 - SUPREME COURT OF INDIA], We, therefore, answer question (C) in affirmative and in favour of the assessee and against the Revenue and held that the Appellate Tribunal was right in law in confirming the order of the CIT(A), whereby he had deleted the disallowance of interest on hire purchase in relation to new Soda Ash Plant and interest and commitment charges in relation to expansion of Chloromethane Plant. - Decided against the revenue.
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