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2019 (1) TMI 1142 - KERALA HIGH COURTDeduction u/s 80IA - entitled to the notional carry forward - Initial assessment year - loss incurred by the assessee on installation of wind mill and absorbed by the other businesses of the assessee - Held that:- The question stands covered in favour of the assessee by virtue of Circular No.1/2016 dated 15.02.2016 issued by the Central Board of Direct Taxes (CBDT). Hence the question of law has to be answered in favour of the assessee and against the Department. The initial year for the purpose of Section 80IA, is the initial assessment year from which the claim of deduction is commenced and the assessee is entitled to the notional carry forward from that particular year. The order of the Tribunal is reversed to that extent. Claim under Section 41(1) - sales tax liability refunded to assessee in the subject assessment year by virtue of a decision of the jurisdictional High Court - assessee claimed that it has to be kept as a contingent liability since an appeal is pending before the Hon'ble Supreme Court - Held that:- Tribunal found that as and when and if the Supreme Court decides against the assessee, the assessee would be able to claim the amount again as expenditure. We find that sufficient safeguards have been made by the Tribunal to that end and we find no reason to interfere with the directions of the Tribunal. The question stands answered against the assessee. Nature of expenditure - expenditure incurred insofar as carrying out repairs of the office of the assessee should be a revenue expenditure or a capital expenditure - Held that:- The expenditure incurred was insofar as making repairs of the office building itself, by using Plaster of Paris. The same having an enduring benefit to the business of the assessee has to be treated as capital expenditure and hence we find no reason to interfere with the order of the Tribunal. The question of law raised is answered in favour of the Revenue and against the assessee.
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