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TMI Blog2010 (10) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... nteralia observed by the Assessing Officer that the assessee in the computation of income has claimed a deduction of Rs.5,76,42,862/- being expenses incurred during the year which have been capitalised by the assessee in its books of account as capital work in progress. On being asked, it was explained by the assessee that the assessee is in incurring expenses for bidding of various contracts, expenses on site exploration, expenses on travelling of personnel in connection with these activities. The assessee further submitted that since the expenses are incurred in connection with the ongoing business and are revenue in nature, the same are allowable as deduction. The assessee also brought to the notice of the Assessing Officer decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities and accordingly he allowed the claim of the assessee. 3. Apart from this the Assessing Officer further observed that the assessee has claimed depreciation of Rs.2,47,99,964/-. The Assessing Officer was of the view that the depreciation claim of the assessee is required to be modified on the basis of finding given in the assessment order for Assessment Year 1993-94 and accordingly he computed the depreciation at Rs.2,47,45,864/- as against claim of the assessee Rs.2,47,99,964/-. The Assessing Officer after making some other disallowance computed the assessee's total income at a loss of Rs.1,26,65,33,302/- and book profit u/s.115JB at Rs. Nil, vide order dated 10.6.2008 passed u/s.143(3) of the Income tax Act, 1961(the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Jurisdictional High Court on question No.(b) has observed and held vide para-2 of its judgment as under:- "As regards the second question is concerned, the finding recorded by the Tribunal is that the assessee is engaged in the business of operation of rigs for extraction of oil and undertaking other oil related activities. It is further recorded by the Tribunal that in the interest of assessee's business and in continuation of the business carried on by it, the assessee had to explore the chances of development in the field of oil exploration for which it had to submit itself for bidding and tenders. The tribunal has held that submitting tenders and bids in the field of oil exploration is a highly sophisticated technical task ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upports the order of the ld. CIT(A). 12. We have carefully considered the submissions of the rival parties and perused the material available on record. We find that the facts are not in dispute inasmuch as it is also not in dispute that the depreciation is to be allowed following the Tribunal order for the Assessment Year 1993-94 in assessee's own case wherein the claim of the assessee was decided in the favour of the assessee. The ld. CIT(A) following the said order of the Tribunal directed the Assessing Officer to re-compute the depreciation in the light of the order of the Tribunal supra. In the absence of any contrary material placed on record by the revenue we do not find any error in the order of the ld. CIT(A) in directing t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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