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TMI Blog2015 (10) TMI 2177X X X X Extracts X X X X X X X X Extracts X X X X ..... A Mohan Alankamony, Accountant Member This appeal is filed by the Assessee , aggrieved by the order of the Learned Commissioner of Income Tax(A)-V, Chennai dated 11.12.2013 in ITA No.611/13-14/A-V passed under Sec.143(3) read with Sec.147 & Sec. 250 of the Act. 2. The Assessee has raised ten elaborate grounds in its appeal; however the crux of the issue is that:- (i) The Ld. CIT (A) had erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd finally, the assessment was completed on 24.12.2010 wherein the Ld. Assessing Officer disallowed the above stated expenditure. During the course of assessment proceedings, it was observed by the Ld. A.O that the assessee had incurred expenditure on its "Oil Solvent Extraction Plant" amounting to Rs. 18,84,633/-. The Ld. Assessing Officer further observed from the annual report of the company th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. The Ld. CIT (A) further observed from the remand report that the assessee had not claimed depreciation on the plant producing the crude solanesol oil which confirmed the finding of the Ld. Assessing Officer that the Solvent Extraction Plant is not fully setup in the relevant year under consideration and therefore, the expenditure incurred toward the project should be treated as capital expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted into finished goods and available as stock in trade to the assessee for sale. Hence any expenditure incurred for producing the semi finished goods will be in the nature of revenue expenditure and has to be debited to the Profit And Loss account. Consequently the semi finished goods will also be reflect in the credit side of the Profit And Loss account as "Semi-Finished goods" and as well as in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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