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2016 (6) TMI 1433 - AT - Income TaxAllowability of expenditure on project abandoned - expenditure claimed to be representing cost of labour and other revenue expenditure on putting up structure for installation of spinning machines - project was stated to be abandoned due to its non-viability and the expenditure had been written off to the P&L Account and added back in the computation of total income - HELD THAT:- As decided in PRIYA VILLAGE ROADSHOWS LTD. [2009 (8) TMI 765 - DELHI HIGH COURT] any expense incurred for a project which has been abandoned due to its non-viability, expense is an allowable revenue expense especially when all the items of expenditure are of revenue in nature. In this case certain expenses on salaries etc. were incurred on a Hotel project, which was later on abandoned due to its non-viability. ITAT following the Delhi High Court decision in the case of Modi Industries held that there was unity of control / command / management and also the expenses of the revenue nature, and as such, the expense; written off and claimed as deduction is property allowable Accordingly, setting aside the finding the issue is restored back to the Ld.CIT(A) to decide the same in accordance with law after giving the assessee a reasonable opportunity of being heard. Disallowance u/s 14A - AR submitted assessee has made investment of share out of its fund in Mid 1990 and no dividend has been earned in the year - HELD THAT:- On a perusal of the assessment order, it is seen that the assessee has consistently made a claim that the investments have been from its own funds. Before the CIT(A), it has also been stated that these investment in shares were made in early 1990s out of its own funds. It has been argued that in the year under consideration, no dividend has been earned thereon which is established from page 19-20 which is an extract of the P&L Account of the assessee - AR considering the request of the Revenue stated that he had no objection if the issue is verified. Accordingly in the light of the submissions of the parties and considering the material available on record and the judicial precedent cited, we set aside the issue back to the file to the CIT(A) with the direction to verify the claim of the assessee and allow necessary relief if so warranted on facts considering the judicial precedent cited.
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