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2021 (11) TMI 376 - AT - Income TaxAllowable business expenditure - Expenses related to project of NTPC which according to the A.O. was incurred prior to setting up of the business - HELD THAT:- We note that in the assessees's own case, the Tribunal upheld the view of the Ld. CIT(A) for A.Y. 2012-13 and A.Y. 2013-14, and held that assessee has set up its business. And further the Tribunal did not interfere with the partial confirmation of the disallowance made by AO regarding the claim of pre-operative expenses as revenue expenditure viz, legal and professional expenses, community welfare expenses, environmental expenses, project expenses, salaries which were directly attributable to the project of NTPC and the said expenses to be capitalized. And it is further noted that the Tribunal confirmed the action of Ld. CIT(A) allowing other expenditure claims as revenue expenditure which were exclusively related to the running of the business. Thus, we note that for A.Y. 2012-13 and A.Y. 2013-14, so far as the expenditure related to the NTPC project was concerned, the Ld. CIT(A) held it to be expenses related to pre-operative stage and disallowed it as revenue expenditure and directed it to be capitalized, which action of Ld. CIT(A) has been upheld by the Tribunal [2021 (11) TMI 363 - ITAT JODHPUR] - And we note that in those appeals, the assessee has not pressed the C.O. which was challenging the action of the Ld. CIT(A) directing the capitalization of expenditure related to expenditure incurred in respect of NTPC project. So the action of Ld. CIT(A) to that extend got crystallized. Appeal of the Revenue stands dismissed.
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