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2022 (3) TMI 21 - AT - Income TaxDisallowance on account of expenses incurred on construction of road (owned by the State Government Authorities) - Allowable expenses u/s 37(1) - AO noted that the roads were not owned by the assessee; in view of which, he disallowed the expenses incurred on construction of the road - HELD THAT:- We find that the identical issue has already been decided against Revenue and in favour of the assessee in the case of NTPC Ltd[2019 (5) TMI 95 - ITAT DELHI] wherein held when the roads were constructed around the factory with an amount incurred by the assessee existing on the land owned by Government of UP, the assessee did not acquire any asset of an enduring nature. Assessee is having existing right to carry out the business, any expenditure made by it for smooth running of the business would not lead to acquisition of capital assets. Thus the expenditure incurred by the assessee on construction of road, water supply, rail connectivity and other infrastructure activities on the assets not owned by it but owned by various Government Departments are revenue expenditure. - Decided in favour of assessee. Addition of excess interest claimed - disallowance of community development and welfare expenses - AO was of the view that this expenditure was in the nature of Corporate Social Responsibility, and was not allowable - CIT-A deleted the addition - HELD THAT:- No material have been brought for our consideration from either side, Revenue or the assessee, to persuade us to take a view different from view already taken by the Ld. CIT(A) in the impugned appellate order dated 15.06.2017 on these issues. Therefore, we decline to interfere with the impugned appellate order of the Ld. Ld. CIT(A); and dismiss grounds 2 and 3 of appeal. - Decided against revenue.
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