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2015 (8) TMI 551 - AT - Income TaxDeduction of interest - Whether CIT(A) has erred in allowing the deduction of interest as revenue expenditure even though the same was never claimed by the assessee in the return of income? - Held that:- It is not in dispute that the assessee paid instalment towards conversion charges of land and the asset was already in existence and the business of the assessee was running from the very same factory premises. Learned counsel of the assessee fairly accepted that the assessee neither made any claim in the original return nor filed any revised return and the interest was also not found placed in the profit and loss account but the assessee pressed his claim by way of letter filed before the Assessing Officer during the assessment proceedings. In view of the decision of the hon'ble apex court in the case of Goetze (India) Ltd. v. CIT [2006 (3) TMI 75 - SUPREME Court ] AO is not empowered to entertain any claim out of return of income which could not find place in the original return of income or otherwise than by revised return but in the same decision, the hon'ble apex court made it clear that this did not impinge on the power of the Tribunal. However, we are of the considered opinion that since the asset, i.e., factory premises was already in use of the assessee, therefore, the interest paid along with instalment towards conversion of charges of land cannot be treated as capital expenditure and the same cannot be held to be capital expenditure. Thus, we are of the opinion that the Commissioner of Income-tax (Appeals) was right in holding that the interest expenditure cannot be capitalised and the same was allowable as revenue expenditure. - Decided against revenue.
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