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2019 (1) TMI 1918 - AT - Income TaxAddition being provision for enhanced compensation on land acquisition - court has not yet quantified the exact compensation and interest payable - CIT-A deleted the addition - HELD THAT:- We in agreement with the view taken by the CIT(A) that the A.O on the basis of misconceived facts had made an addition in the hands of the assessee. D.R had also not placed before us any such material or raised any such contention which could persuade us to conclude that the factual observations of the CIT(A) suffer from any infirmity - the aforesaid expenses viz. (i). interest on service tax on transport of goods; (ii). Interest on Kerala State General Tax and (iii). Interest on leasehold land acquisition payments being in the nature of a revenue expenditures were allowable as a deduction while computing the income of the assessee, thus finding no infirmity in the order of the CIT(A) who had rightly deleted the addition - Decided against revenue. Nature of expenditure - Addition on account of acquisition of land expenses - expense is related to the acquisition of land and cannot be revenue expenditure - CIT-A deleted the addition - HELD THAT:- Expenditure incurred by the assessee pursuant to an understanding with the State government of Kerala was in the course of its business of mining, hence the same being clearly in the nature of a revenue expenditure was to be allowed as a deduction while computing its income for the year under consideration. Apart therefrom, we find that the issue under consideration as regards the allowability of the aforesaid expenditure is squarely covered by the order passed in the assesses own case - We thus finding ourselves to be in agreement with the view taken by the Tribunal, thus are of the considered view that the amount incurred by the assessee was rightly claimed as a revenue expenditure. We thus not finding any infirmity in the order of the CIT(A) wherein the latter had ordered deletion of the addition - Decided against revenue Addition on account of school expenses at Orissa - expense is related to the running of the school and not wholly and exclusively for the purpose of business - CIT-A deleted the addition - HELD THAT:- The aforesaid expense which had strictly been incurred by the assessee pursuant to government directive since 1990 onwards, as rightly observed by the CIT(A) was in the nature of a revenue expenditure which was to be allowed while computing the income of the assessee for the year under consideration. We thus finding ourselves to be in agreement with the view taken by the CIT(A) in context of the issue under consideration, uphold the his order. The Ground of appeal raised by the revenue is dismissed.
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