Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 283 - HC - Income TaxReopening of assessment u/s 147 - Allowability of expenditure as revenue or capital - expenditure of Rs. 6.01 crores as amount paid to Madhya Pradesh Electricity Board (MEPB) for the line/bay charges - AO was of the view that the expenditure incurred was for the creation of capital assets - CIT(A) allowed the claim as revenue expenditure - HELD THAT:- This Court is of the view that the amount paid by the assessee to the Madhya Pradesh Electricity Board for bay lines has been rightly taken to be the revenue expenditure. Similar benefit had been extended to the assessee for the assessment year 1992-1993 and 2004-2005. This expenditure has been rightly claimed by the assessee as per the provisions of the Income Tax Act. There was no reason for re-opening and initiating proceedings under Section 147/148 of the Act. The Tribunal has rightly allowed the appeal of the assessee by appreciating the facts in the right perspective. Decided against revenue.
|