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2019 (10) TMI 464 - AT - Income TaxDisallowance of cost of construction of the building on the leasehold land - HELD THAT:- We have gone through the judgment of Madras High Court in TVS Lean Logistics Ltd. [2007 (6) TMI 44 - HIGH COURT, MADRAS] after considering Explanation 1 to Section 32(1) of the Act and the judgments of Apex Court in Nasiruddin v. Sita Ram Agarwal [2003 (1) TMI 693 - SUPREME COURT] and Raghunath Rai Bareja v. Punjab National Bank [2006 (12) TMI 479 - SUPREME COURT] found that similar expenditure is revenue in nature Incentive received from the Government for exploring new market - capital receipt or revenue receipt - HELD THAT:- As decided in own case [2016 (7) TMI 951 - ITAT CHENNAI] the Government of India provided the incentive for exploring the new markets across the globe. Exploring a new market for a specified area would naturally expand the market area of the assessee. The incentive given to the assessee is not for running the business profitably but for expanding the market area. Tribunal is of the considered opinion that the incentive given by the Government to the assessee for exploring the new market is a capital receipt, hence it cannot be treated as income either under Section 2(24) or 28 - we are unable to uphold the order of the lower authority. Accordingly, the orders of the lower authorities are set aside and the addition made by the Assessing Officer is deleted - Appeals filed by the Revenue stand dismissed.
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