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TMI Blog2011 (5) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... Tyagi, Judicial Member:- This is Revenue's appeal against the order of Commissioner of Incometax( Appeals)-VIII, Ahmedabad in appeal No. CIT(A)-VIII/ITO/4(3)/187/07-08 dated 25-02-2009 for the assessment year 2005-06. 2. The Revenue has taken following ground:- "1. The learned CIT(A) erred in law and on facts in holding that the expenses claimed by the assessee is not debited to the P & L accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, therefore, held that these expenses were not allowable in terms of provision of Section 40(a)(ia). He accordingly disallowed the same and added in the income of the assessee. Before Ld. CIT(A) it was contended that assessee started its commercial project in the month of Feb-Mar'05. Since the activity in the relevant period were very meager, the preliminary cost incurred by assessee pertaining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see deleted the addition by observing as under:- "5.3 I have considered the facts of the case and submissions of the Ld. AR carefully. There is no dispute about the fact that the payments made by the appellant with regard to consultancy charges, advertisement expenses and dummy model expenses were required to be paid after deduction of tax at source under the specified provisions. Since, the dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified provisions of the Act." Since, there is no dispute about the fact that assessee has not claimed the expenses in the profit and loss account and has capitalized them under the head 'preoperative expense' the disallowance of these expenses under the provision of Section 40(a)(ia) is not sustainable. Therefore we find no infirmity in the order passed by Ld. CIT(A) and same is hereby upheld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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