TMI Blog2016 (2) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 (in short the Act ) against the order dated 30.10.2012 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench B , Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 800/Chd/2012, for the assessment year 2009-10, claiming the following substantial question of law:- Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in upholding the decision of Ld. CIT(A) in deleting an addition of ₹ 81,90,000/- made by the Assessing Officer by treating the Land Development Expenditure as Capital in nature? 2. Briefly stated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng its own orders dated 9.7.2010 passed in ITA No. 202/Chd/2010 in the case of the assessee for the assessment year 2006-07 and dated 30.11.2011 in ITA No. 754/Chd/2011 for the assessment year 2008-09. Hence, the present appeal by the revenue. 3. We have heard learned counsel for the revenue. 4. The primary issue that arises for consideration in this appeal is whether the expenditure incurred by the assessee for reclaiming and development of land was capital expenditure or revenue expenditure. 5. It was not disputed by the learned counsel for the revenue that the similar issue in the case of the assessee for the assessment year 2005-06 had come up for consideration before this Court in ITA No. 163 of 2009 (Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all decisive. What is decisive is the nature of the business, the nature of the expenditure, the nature of the right acquired and their relation inter se and this is the only key to resolve the issue in the light of the general principles, which are followed in such cases. 11 to 13 XX XX XX 14. Examining the factual matrix in the present appeals, the Tribunal after examining the file noting of the Punjab Government dated 28.7.2005 which had been annexed to the assessment order recorded a clear finding that the land was lying fallow and was not barren though it was not being put to alternative use. The Tribunal on appreciation of evidence on record had come to the conclusion as under:- 7. A bare perusal of the above notings of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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