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2023 (7) TMI 1302 - ITAT KOLKATADisallowance u/s 35AD being capital expenditure incurred for the purpose of specified business - HELD THAT:- The issue is squarely covered by the decision of the Coordinate Bench of the Tribunal in the Haryana State Warehousing Corporation [2019 (10) TMI 1573 - ITAT CHANDIGARH] held that the lower authorities have wrongly interpreted the relevant provisions of the Act. There are two parts of the above said provisions. In the first part, it has been mentioned that an assessee is eligible to claim deduction of the capital expenditure if such an expenditure has been incurred wholly and exclusively in a specified business. There is no condition of any date or year of commencement of specified business. However, in the second part, it has been provided that if such an expenditure has been incurred prior to the commencement of business and has been duly capitalized in the books of account, the claim will be allowed in the year in which the assessee commences operations of his specified business. There is neither any overlapping nor any contradiction in the aforesaid provision. The assessee is covered in the first part i.e. the assessee has incurred the expenditure on the specified business during the year in which operations of his business of warehousing were already going on. No justification on the part of the lower authorities in denying the deduction to the assessee u/s 35AD - This ground is allowed in favour of the assessee.
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