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2018 (7) TMI 1079 - AT - Income TaxDisallowance of deduction u/s.35AD - Deduction in respect of expenditure on specified business - Held that:- Any capital expenditure incurred by the assessee prior to the commencement of operations of the new unit shall be allowed as deduction in the previous year in which the assessee commences the operation of offices as new specified business if the assessee has capitalized the amount of expenditure in its books of accounts on the date of commencement of operation of the specified business which is present in the case in hand. The assessee commenced its business on 17.11.2011 and he applied for the star classification certificate on 07.06.2013 which was granted by the concerned department on 24.09.2013 with effect from 11.09.2013 till 10.09.2018. Application was made by the assessee in due time, inspection was conducted by the concerned department and ultimately certificate was issued. There is no fault on the part of the assessee to apply and/or obtain the said certificate so far delay is concerned nor there any time limit specified for obtaining such certificate in this Statute. The assessee thus fulfills the criterion prescribed under the Statute and is entitled to deduction on capital expenditure incurred by him prior to the commencement of its operation and therefore we find no infirmity in the order passed by the CIT(A) and thus we uphold the same. Revenue’s appeal on this ground stands dismissed. Addition/disallowance made by the AO is hereby deleted. - Decided against revenue
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