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2014 (2) TMI 1365 - AT - Income TaxNature of expenditure - Disallowance of deduction of expenditure on the ground that it was capital expenditure - expenditure pertaining to the proposed new power project under the expense heads (a) professional fees (b) travelling expenses (c) tender expenses - HELD THAT:- As assessee was rendering services for operating and maintaining of Power Plant but during the year, the assessee was to start its own Power Plant. The new projects were not expansion of existing business. Even if, the assessee’s new projects are in the same line of business expenses relating to new projects are capital in nature and not allowable as revenue as held by the Hon’ble Bomaby High Court in case of J. K. Chemical Ltd. [1992 (10) TMI 18 - BOMBAY HIGH COURT]. The case law cited by the assessee is not squarely applicable on it because the assessee had incurred expenditure to expand the same business. Thus, we confirm the order of the CIT(A). The assessee’s appeal on this ground is dismissed. Charging of interest u/s.234A, 234B and 234C - HELD THAT:- Charging of interest u/s.234A, 234B and 234C is mandatory as held by CIT vs. Anzum M. H. Ghaswala & Ors. [2001 (10) TMI 4 - SUPREME COURT] to the above finding. The A.O. has not charged any interest u/s. 234A only charged u/s. 234B & 234C.
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