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2018 (12) TMI 327 - AT - Income TaxDisallowance of expenditure on the ground that the same should be capitalized to the cost of building - Held that:- Amount was paid to consultants for planning and concept design, architectural services, designing of AC & ventilation system and basement work relating to the hotel structure. As the hotel structure is yet to be completed and the business is yet to commence, these expenses directly relating to the hotel building are to be capitalized towards the cost of building. In these facts and circumstances of the case, the expenses claimed by the appellant are disallowed which shall be added to the capital cost of the hotel building. Allowable business expenses - Held that:- The finding of the Ld. CIT(A) of holding the expenses as capital expenditure is well reasoned in view of the evidences is available on record. Evidently all these expenses are towards creation of a new asset or for enhancing the capacity of the existing asset and thus same are in the nature of capital expenditure. We do not find any error in the finding of the Ld. CIT(A) on this issue. Disallowing carry forward of the unabsorbed depreciation claimed by the assessee - Held that:- We find that depreciation in the year under consideration was added back by the assessee in the computation of the income and thus we do not understand how the assessee is claiming carry forward of the said depreciation as unabsorbed depreciation. On perusal of the grounds of appeal raised before the Ld. CIT(A), we find that the issue of disallowing carry forward of unabsorbed depreciation was raised in ground No. 2. CIT(A) has also reproduced the submission of the assessee in the impugned order, where the assessee itself has not pressed for adjudication of the ground No. 2. Thus it is evident that CIT(A) has not adjudicated the ground in view of the ground not pressed by the assessee. In the circumstances, we do not find any error in the order of the Ld. CIT(A) on the issue in dispute and accordingly, we dismiss the ground No. 2 of the appeal of the assessee.
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