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2019 (2) TMI 908 - HC - Income TaxNature of expenses - addition on account of 'net present Value' (NPA) - whether said payment was capital in nature and hence cannot be allowed u/s 37(1) - Held that:- Tribunal noted that the assessee was engaged in trading of iron ore and mining ore. During the year under consideration, the assessee had expended a sum of ₹ 1.68 crores by way of payment to the various departments and obtained temporary working permission for mining purpose, which was a precondition. The Tribunal held that the payment was an essential payment required to be made for continuing its existing mining operation and nonpayment of the same would have resulted in adverse consequences. Under such circumstances, we see no error in the view of the Tribunal. Thus, not entertained. Allowable revenue expenditure - expenditure incurred for starting a new project which was later on abandoned - Held that:- Question no.(ii) was considered by this Court in the case of CIT Vs. M/s. Essar Oil Ltd. [2008 (10) TMI 649 - BOMBAY HIGH COURT], this Court had dismissed the Revenue's appeal. Under such circumstances, we see no error in the Tribunal having followed the decision in Essar Oil Ltd. (supra) to dismiss the Revenue's appeal before it. Thus, not entertained.
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