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2019 (3) TMI 1260 - ITAT COCHINRevision u/s 263 by CIT-A - Nature of expenditure - revenue v/s capital expenditure - land maintenance expenditure - erroneous or prejudicial to the interest of the revenue - HELD THAT:- The expenditure that the assessee has incurred is on account of labour charges at the factory for cleaning, removal of waste and increasing vegetation. The expenditure was incurred wholly and exclusively for carrying on the business of the assessee-company in compliance with the directions of the Kerala State Pollution Control Board. The expenditure is only revenue in nature and hence there is no error in the assessment order. Insofar as the expenses incurred for the Childrens Park, we notice that it is a periodic maintenance for the upkeep of the park and not a capital expenditure. The expenditure is revenue in nature and wholly and exclusively for the purpose of the business and hence there is no error in the assessment order. The Cochin Bench of the Tribunal in the case of Acumen Capital Marketing (I) Ltd. [2017 (6) TMI 61 - ITAT COCHIN] had held that in order to invoke the provisions of section 263 of the I.T.Act, the assessment order has to be erroneous and such order has to be prejudice to the interest of the revenue - we are of the view that land maintenance expenses incurred and debited to the P & L account is clearly being revenue in nature, the assessment order cannot be stated to be erroneous. - Decided in favour of assessee.
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