New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 521 - PUNJAB AND HARYANA HIGH COURT

2016 (2) TMI 521 - PUNJAB AND HARYANA HIGH COURT - TMI - Addition on Land Development Expenditure - Capital or revenue - Held that:- Keeping in view the main objects of the assessee, the activities of the assessee, the nature of expenses incurred and also the legal principles noticed hereinbefore, had concluded that the expenditure was revenue in nature - ITA No. 68 of 2013 (O&M) - Dated:- 28-1-2016 - MR. AJAY KUMAR MITTAL AND MRS. RAJ RAHUL GARG, JJ. For The Appellant : Ms. Urvashi Dhugga, Advo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he 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 assessee- Corporation has been set up by the Punjab Government to carry on the business of land development, contract farming, procurement of f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

order dated 22.11.2012 (Annexure A-1) framed the assessment at an income of ₹ 1,52,70,854/- by making additions of ₹ 81,90,000/-. The said amount was disallowed considering the same as capital expenses incurred for the purposes of development of the land. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 18.5.2012 (Annexure A-2) allowed the appeal and deleted the addition of ₹ 8 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1.2011 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 20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. It should be revenue in nature as distinguished from capital expenditure. There is no standard formula providing for determination of an expenditure to be capital or revenue. Every case is to be adjudicated on its own facts and the expenditure is to be looked from commercial point of view. The Supreme Court in Abdul Kayoom (KTMKM) vs. CIT (1962) 44 ITR 689 (SC) noticed that there can be no rule of thumb for determining as to whether a particular expenditure is capital or revenue and that each .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore, on which side of the line a case falls, its broad resemblance to another case is not 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 P .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version