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The Commissioner of Income Tax Versus M/s. Tamil Nadu Tourism Development Corporation Ltd.

2016 (8) TMI 229 - MADRAS HIGH COURT

Expenses incurred in maintaining the Thiruvalluvar statue - enduring benefit - revenue or capital expenditure - Held that:- Asset Thiruvalluvar statue is not owned by the Tamil Nadu Tourism Development Corporation Ltd. Corporation has been entrusted with the only work of maintenance of the statue from out of the contribution made by Poompuhar Shippping Corporation. Business of the Corporation is tourism. Though Mr.M.Swaminathan, learned counsel for the appellant submitted that the Tribunal went .....

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efit towards the conduct of the assessee's business, but the expenditure incurred cannot, at any rate, to be said as an advantage to the assessee in its capital field and thus the expenditure would be capital in nature, so as to disallow the expenditure incurred for maintenance of Thiruvalluvar statue by security charges, electricity charges, establishment charges and expenses for providing protective coating with poly silicon to the statue. Tribunal was right in holding that the expenses incurr .....

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owards security charges, electricity charges, establishment charges and expenses for providing protective coating with poly silicon to the statue have been incurred and when the assessee, by producing the letter dated 04.12.2008, had convincingly explained as to how the grant has been made for specific purposes, some of which were dropped, and the obligation of the state government to return within six months and when the assessee has offered a reasonable explanation, both the Appellate Authorit .....

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ering the substantial questions of law raised in its favour.- Decided against revenue - T.C.A. Nos. 321 and 322 of 2016 - Dated:- 19-7-2016 - S. Manikumar And D. Krishnakumar, JJ. For the Appellant : Mr. M. Swaminathan For the Respondent : Mr. M. Vijayaraghavan JUDGMENT S. Manikumar, J. Tax Case Appeals have been filed against the common orders, made in I.T.A.Nos.550 & 551/Mds/2010 and Cross-Appeals. 2. Facts leading to the appeals are that the assessee, M/s.Tamil Nadu Tourism Development Co .....

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ions were made to the income of the assessee for the assessment year 2005-06: 30% deduction claimed for franchise income as discussed above 50,88,343/- Interest on Government Loan as discussed above 17,55,632/- Thiruvalluvar statue expenses as discussed above 45,34,350/- Prior period expenses as discussed above 8,20,616/- Government grants as discussed above 5,42,20,000/- Similar order was passed for the assessment year 2006-07 and the assessing officer has made the following additions: 30% dedu .....

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5. Aggrieved by the order of C.I.T.Appeal No.436/07-08 dated 19.01.2010 for the assessment year 2005-2006 and C.I.T.(Appeal) No.246/08-09 dated 20.01.2010, for the assessment year 2006-2007, the Commissioner of Income Tax, Chennai filed ITA Nos.550 and 551/2010 respectively. Cross Objection Nos.29 and 30/Mds/2010 have been filed by the assessee. 6. As the issues involved in all the appeals were same, but for the difference in the assessment years, the Income Tax Appellate Tribunal, by common ord .....

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right in holding that the expenses incurred by the assessee in maintaining the Thiruvalluvar statue is revenue in nature on the ground that the statue did not belong to the assessee? 2. Has not the Tribunal erred in overlooking the fact that the expenses incurred for providing protective coating to the statue with poly silicon has extended the 'life' of the statue and therefore the expenses resulting in an advantage of enduring benefit ought to have been classified as capital expenditur .....

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ee for meeting revenue expenditure has not been utilised by the assessee and therefore the receipt by the assessee has to be treated as a revenue receipt only? 8. Aggrieved by the order in I.T.A No.551/Mds/2010 for the Assessment year 2006-2007, Tax Case (Appeal) No.322/2016 has been filed on the following substantial questions of law, 1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the expenses incurred by the assessee in maintaining the Thiruvalluv .....

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that the receipt of grants by the assess from the Central Government capital in nature? 4. Is not the Tribunal wrong in applying the facts of the AY 2005-06 to the AY 2006-07 and holding the receipt of grants by the assessee as capital in nature when in respect of the AY 2006-07, the grants were received by the assessee was for improving its existing infrastructure and not for bringing into existence any new asset? 5. Has not the Tribunal erred in overlooking the fact that the grants received b .....

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intaining the Thiruvalluvar statue and grants received from the Central Government. 9. Inviting the attention of this court to the finding of the Assessing Officer on the expenses incurred in maintaining the Thiruvalluvar statue, Mr.M.Swaminathan, learned standing counsel for Income Tax Department submitted that the Tribunal erred in holding that the expenses incurred by the assessee, Tamil Nadu Tourism Development Corporation Limited, Chennai, to maintain Thiruvalluvar statue at Kanyakumari, is .....

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n. According to him, the only issue to be decided by the Tribunal was whether the expenses for maintaining Thiruvalluvar statue is, revenue or capital in nature, and that the Tribunal was not called upon to decide as to whether the statue itself was owned by the assessee or not. 10. Mr.M.Swaminathan, learned standing counsel for the appellant further submitted that the Tribunal failed to consider that the expenses incurred for coating the statue with poly silicon was capital in nature, as it hel .....

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grants for developing infrastructural facilities, at tourist destinations and according to him reading of the sanction orders would show that the money was invested only for meeting the existing infrastructure and therefore, the receipt was revenue in nature. He also added that the Tribunal failed to note that though money was received by the assessee for meeting its revenue expenditure for improving the existing facilities, and the Tribunal has failed to consider that the assessee had not utili .....

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ces, when the Tribunal itself expressed an opinion that it was not in a position to give a clear finding as to how the grants were expended, learned senior standing counsel for Income Tax department prayed that the matter be remitted to the original authority for fresh adjudication. 13. Per contra, Mr.M.Vijayaraghavan, learned counsel for the respondent submitted that M/s.Tamil Nadu Tourism Development Corporation Limited, Chennai was formed for the purpose of improving tourism in the State of T .....

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the maintenance charges, Poompuhar Shipping Corporation has been collecting ₹ 5/- from ferry charges. Poompuhar Shipping Corporation had already collected ₹ 1.00 Crore towards maintenance charges and the same was handed over to the assessee. 14. Mr.M.Vijayaraghavan, learned counsel for the respondent further submitted that the respondent/assessee, for the assessment year 2005 - 2006 in the Profit and Loss account, the assessee claimed ₹ 45,34,350/- and for the assessment year .....

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ry charges of Poompuhar Shipping Corporation. As the assessee is not the owner of the asset and inasmuch as, maintenance is done, with the source of the income earned at the rate of ₹ 5/- from ferry charges, repairs and maintenance done are only on revenue field. Therefore, the expenses incurred for maintaining the statue by the assessee cannot be said to be a capital expenditure. He also added that assessee has also incurred similar expenditure for all the years prior to the assessment ye .....

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ted in 300 ITR 35 (Del), Mr.M.Vijayaraghavan, learned counsel for the respondent submitted that when expenditure was incurred on the asset not owned by the assessees, then the same has to be construed only as a revenue expenditure. At this juncture, he reiterated that the statue is not owned by M/s.Tamil Nadu Tourism Development Corporation Limited, Chennai/respondent/ assessee. 16. Learned counsel for the respondent submitted that both the Appellate Authority and the Tribunal, concurrently and .....

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sment year 2006-2007. It is the further submission of the learned counsel for the respondent/assessee that Government grants are only for carrying out specific projects. Expenditure that may be incurred on such projects are estimated and based on such estimation, Government gives grant for implementing the specified projects. If for any reason, the project is not carried out, then the respective Government will issue instructions to deal with the grant/money, given to Tamil Nadu Tourism Developm .....

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letter dated 04.12.2008 of the Government of India, Ministry of Tourism, wherein, the Central Government have given grant for development in Kolli Hills in Namakkal District, a tourist destination, at an estimated cost was ₹ 327.98 lakhs. He also submitted that in the said letter dated 04.12.2008, it has been clearly stated that the State Government shall utilise the amount only for the projects and in case, the fund cannot be utilised for more than six months, the same should be surrende .....

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t on the project for which grant has been released. According to him, at the time of grant, it was never envisaged that any part of the grant would accrue as income to the implementing agency like, Tamil Nadu Tourism Development Corporation Ltd. He added that if at all, it is only after completion of the project and if surplus remains unutilised and if the Government permits the implementing agency like, Tamil Nadu Tourism Development Corporation to treat the surplus income, such portion can be .....

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ission that at the time of grant, there is an attendant obligation to utilise the entire amount for the project contemplated by the Government. No part of the same will constitute as income of the Corporation. According to him, merely because the Corporation could not give particulars as to how the grants were to be utilised in the future, it does not mean that the grant should be treated as income of the corporation in the first year only. 21. Learned counsel for the respondent further submitte .....

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ed as income by the Appellate Authority. As regards ₹ 663.50 Lakhs given by the State Government, the same has subsequently been converted into equity. 22. Learned counsel for the assessee further submitted that as regards the Government of India grant for the assessment year 2006-2007 of ₹ 188.97 Lakhs, the entire sum has been earmarked to be spent on specific projects only and Government of India have not permitted any amount out of the grants and the subject assessment years towar .....

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ppeals. 23. Heard the learned counsel for the parties and perused the materials available on record. 24. In the light of the rival submissions, let us consider as to how the Assessing Officer, Appellate Authority and ITAT, have dealt with the issues. As regards the expenses for maintaining Thiruvalluvar statue, the Assessing Officer has recorded as under: "Assessee in the profit and loss account claimed ₹ 45,34,350/- for Thiruvalluvar statue expenses for the previous year relevant to .....

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shment charges and providing protective coating with poly silicon to the statue (Rs.34.00 Lakhs). As the entire expenditure incurred in Thiruvalluvar statue was of recurring nature and no capital expenditure is involved the expenditure may be allowed. Moreover all expenditure incurred towards Thiruvalluvar statue are of maintenance nature only as TTDC has been entrusted with the task of maintaining the Thiruvalluvar statue only by virtue of government order and as such TTDC does not have any own .....

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e statue can be increased. Thus cannot be allowed as deduction as it is a capital expenditure" 25. For the Assessment year 2005 - 2006, the Assessing Officer disallowed the maintenance charges of ₹ 34,00,000/-, as capital expenditure. Citing the very same reasons for the Assessment Year 2006 - 2007, the Assessing Officer disallowed the sum of ₹ 45,34,350/-. 26. Letter No.12745/TS2/2000 dated 22.06.2002 of the Commissioner of Tourism Incharge, Chennai addressed to the Managing Di .....

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42556/2001, dt.26.5.2002 of District Collector, Kanniyakumari addressed to the Secretary to Government, Information and Tourism Department. 3) From the Secretary to Government D.O.Letter No.33447/T3/2001-02, dt.31.5.2002 addressed to the Commissioner of Tourism 4) This Office Proc. No.12745/TS2/2000, Dt.22.6.02 - I am to invite your kind attention to the G.O. cited, wherein orders have been issued to take over the administration of the Thiruvalluvar statue and its surroundings by the Tourism Dep .....

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r the same to the TTDC for future maintenance. In respect of funds for the maintenance of statue, I am to inform that Poompuhar Shipping Corporation has been collecting an amount of ₹ 20/- as ticket from the tourists out of which ₹ 5/- is meant for the maintenance of the Thiruvalluvar statue. It is learnt that an amount of Rupees One Crore so far collected on behalf of the Thiruvalluvar statue is available with the Shipping Corporation. As the developmental works have to be carried o .....

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Corporation. This may be treated as 'Most Urgent'. Sd/- V.Ramadoss, Commissioner of Tourism Incharge. Copy to: The District Collector, Kanniyakumari at Nagercoil The Tourist Officer, Kanniyakumari The Secretary to Government, Information and Tourism Department, Fort St. George, Chennai - 600 009. A reading of the above said letter fortifies the contention of the respondent/assessee that maintenance of Thiruvalluvar statue has been entrusted to Tamil Nadu Tourism Development Corporation L .....

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mmissioner of Tourism (Incharge) vide letter dated 22.06.2002 has requested the Managing Director, Poompuhar Shipping Corporation to hand over the amount to Tamil Nadu Tourism Development Corporation Limited. 27. As rightly contended by the learned counsel for the respondent, Thiruvalluvar Statue is not owned by the Tamil Nadu Tourism Development Corporation. It is owned by Government of Tamil Nadu. Statue has been constructed by the State Construction Corporation. From out of the contribution o .....

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he Thiruvalluvar statue. The source of income for meeting the expenditure is from Poompuhar Shipping Corporation Limited and not from the capital asset of the Tamil Nadu Tourism Development Corporation Limited. 28. One of the contentions raised by Mr.M.Swaminathan, learned counsel for the revenue is that the Tribunal went wrong in its conclusion and owing to the fact that the expenditure was not made once for all, but with a view to bring advantage of enduring benefit to the statue and keep attr .....

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of construction of roads in the area around the factory. Construction of roads around the factory, facilitated transportation of sugar cane. On the aspect, as to whether the assessee therein has acquired any asset of an enduring nature, the Hon'ble Supreme Court held in the negative. The Apex Court further held that no doubt the advantage secured for the business existing was of long duration inasmuch as it would last so long as roads continued to be in motorable condition, but it was not an .....

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ne the less, be on revenue account and the test of enduring nature acquired by an assessee that brings the case within the principle laid down in this test. What is material to consider is the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable on an application of this test. If the advantage consists merely in facilitating the assessee's trading operations or enabling the management and conduct o .....

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a Hon'ble Division Bench of this court, held that the bridge is not owned by the assessee. It is built by the Government and therefore, the assessee will not acquire any right or ownership over the bridge in the short term or in the long term or in the long run by reason of the contribution. The Hon'ble Division Bench rejected the contention of the revenue to treat the expenditure as capital. Similar is the view in Commissioner of Income Tax vs. T.V.Sundaram Iyengar & Sons (P) Ltd. .....

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able as business income? A Division Bench of this court held that the contribution to construction of a building to the Chamber of Commerce was a revenue expenditure. 34. On the aspect of enduring benefit, it is worthwhile to consider the observations of the Hon'ble Supreme Court in K.T.M.T.M.Abdul Kayoom & Anr. vs. CIT reported in (1962) 44 ITR 689 (SC) as hereunder: " ......what is decisive is the nature of business, the nature of the expenditure, the nature of the right acquired, .....

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the same, their impact on the assessee, particularly in matters relating to the future of the assessee's trade and business, whether it could be sustained on ordinary canons of commercial expediency simpliciter, whether it is a step in aid of future expansion or prolongation of life of an existing business, whether it is to secure an enduring benefit, whether the expenditure constitutes conceivable nucleus to form the foundation for the posterior profit earning, whether the expenditure could .....

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00 ITR 0035, on the facts and circumstances of the case, a Hon'ble Division Bench of the Delhi High Court observed that the admitted position is that the service lines did not belong to the assessee, but belonged to MSEB and were laid, so as to enable the assessee to conduct its business more efficiently, which may perhaps be an enduring advantage, but intended to enable the assessee to carry on its business more efficiently and profitably leaving the fixed capital untouched. It is correct t .....

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Tax (Appeals)-III at paragraph No.5.2 assessed as follows: " 5.2. I have carefully considered the facts of the case and the submissions of the ld. AR. The appellant is maintaining the Thiruvalluvar statue in Kanyakumari based on direction from State Government of Tamilnadu. Kanykumari is also one of the major tourist spots attracting large number of tourists and many people visit Thiruvalluvar statue located in the sea. As such, the statue promotes tourism in a significant way and is very m .....

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as business expenditure. Hence, the AO is directed to delete the addition of ₹ 45,34,350/-." Setting out the same reasons, for the assessment year 2006 - 2007, the Commissioner of Income Tax (Appeals) held that the Assessing Officer should have allowed depreciation on the income incurred on Thiruvalluvar statue. 38. Considering the case of the assessee that the main object is to develop and carry on tourism in the State of Tamil Nadu and therefore, in the fitness of things the assess .....

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re and the same is only a revenue expenditure. The Tribunal further held that it has to be seen that the statue Thiruvalluvar is a public property and not the property of the assessee corporation. Therefore, under no stretch of imagination, expenditure can be treated as capital, and so saying the Tribunal has concurred with the orders of the Commissioner of Income Tax (Appeals) and accordingly, rejected the contentions of the revenue. 39. Benefit of enduring nature is not the sole or exclusive t .....

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ing, without affecting the capital base of the company, the expenditure will have to be allowed as revenue expenditure. As observed by the Apex Court in Empire Jute Co. Ltd.'s case (cited supra), it is not every advantage of enduring benefit acquired by an assessee amounts to capital expenditure. What is the material to be considered is the nature of advantage, in a commercial sense and it is only where the advantage is in the capital field, then the expenditure would be capital. If the adva .....

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d that, where the assessee has an existing right to carry on a business, any expenditure made by it during the course of business for the purpose of removal of any restriction or obstruction or disability would be on revenue account, provided the expenditure does not acquire any capital asset. Payments made for removal of restriction, obstruction or disability may result in acquiring benefits to the business, but that by itself would not acquire any capital asset. (ii) In Royal Calcutta Turf Clu .....

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s of the business must be determined on a consideration of all the facts and circumstances and by the application of the principle of commercial trading. The question must be viewed in the larger context of business necessity or expediency. If the outgoing or expenditure is so related to the carrying on, or conduct of, the business that it may be regarded as an integral part of the profit-earning process and not for acquisition of an asset or a right of a permanent character the possession of wh .....

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d by the Supreme Court at page 10 of the said report (124 ITR 1) that it would be misleading to suppose that, in all cases, securing a benefit for the business would be, prima facie, capital expenditure "so long as the benefit is not so transitory as to have no endurance at all". There may be cases where expenditure, even if incurred for obtaining an advantage of enduring benefit, may, nonetheless, be on revenue account and the test of enduring benefit may break down. It is not every a .....

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revenue account, even though the advantage may endure for an indefinite future. The test of enduring benefit is, therefore, not a certain or conclusive test and it cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case." (iv) In Minoo F. Mehta v. CIT reported in [1996] 217 ITR 578 the Bombay High Court held as under:- "The line that divides revenue expenditure from capital expenditure is often very thin and hazy. None of the .....

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rded as capital expenditure. But, if it is for the purpose of protecting his business, it would be considered as revenue expenditure. Moreover, it is the true nature of the expenditure that is relevant and not the description given to it by the assessee in his books of account or other documents." (v) In CIT v. Madras Auto Service (P) Ltd., reported in [1998] 233 ITR 468 = 99 Taxman 575, it is held as follows: All these cases have looked upon expenditure which did bring about some kind of a .....

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by spending the said amounts did not belong to the assessee but the assessee got the business advantage of using modern premises at a low rent, thus saving considerable revenue expenditure for the next 39 years, both the Tribunal as well as the High Court have rightly come to the conclusion that the expenditure should be looked upon as revenue expenditure." 40. A capital expenditure is an expenditure incurred on the acquisition of a capital asset, by which, expenditure incurred, the value o .....

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ional costs, for running the business. 41. Capital expenditure enhances the productivity or the earning capacity. Whereas, the Revenue expenditure does not enhance, neither the value or the earning capacity. But the condition of the asset is retained. Capital expenditure derives benefits beyond the current accounting period. They are non-recurring in nature. Whereas, the revenue expenditure is incurred on regular basis. The benefits are relatively for a shorter period. Expenditure incurred in th .....

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aged in the business of conducting tours, operation of hotels and exhibition, etc. The expenses incurred in maintaining of the statue from the source from Poompuhar Shipping Corporation, is an expense incurred in consonance with the activities of the business of Tamil Nadu Tourism Development Corporation, Chennai and such activity cannot at any stretch of imagination to be termed as capital expenditure, in the light of the contrasting features, as capital and revenue expenditure, is understood. .....

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ed any capital asset or enduring benefit or advantage when the object of incurring expenditure from out of the source from Poompuhar Shipping Corporation Limited is one of business expediency and therefore, it constitutes revenue expenditure. 44. Admittedly, in the case on hand, asset Thiruvalluvar statue is not owned by the Tamil Nadu Tourism Development Corporation Ltd. Corporation has been entrusted with the only work of maintenance of the statue from out of the contribution made by Poompuhar .....

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sion, as to whether the expenditure is capital or revenue, submissions to the contra, cannot be countenanced. Maintenance of the statue, may endure some benefit towards the conduct of the assessee's business, but the expenditure incurred cannot, at any rate, to be said as an advantage to the assessee in its capital field and thus the expenditure would be capital in nature, so as to disallow the expenditure incurred for maintenance of Thiruvalluvar statue by security charges, electricity char .....

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t in holding the receipt of grants as capital in nature?" 47. Contention of the respondent/assesse, extracted supra, is fortified by the letter dated 04.12.2008. Perusal of the same shows that the Ministry of Tourism, Government of India has sanctioned a sum of ₹ 327.98 Lakhs for development of Kolli Hills as a tourist destination in Namakkal District in Tamil Nadu with the release of the first instalment of ₹ 262.38 Lakhs for specified projects. At paragraph 6 of the letter, Go .....

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rnment unutilised for more than six months. In case the funds cannot be utilised by any such time, the same will have to be surrendered to Central Government with interest or their formal approval should be taken to transfer/adjust the amount against other Central financially assisted projects." 48. In paragraph 13 of the said letter, Ministry of Tourism, Government of India has said as follows: "13. The payment of ₹ 262.38 Lakhs (Rupees Two sixty two lakh and thirty eight thousa .....

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overnment of Tamil Nadu for "Erection of Ropeway at Kodaikanal in Tamil Nadu" vide sanction No.5-PSW(19)/2004 dated 26.3.2004. (copy enclosed). The balance amount of ₹ 213.62 lakh (Rs.238.00 lakh minus ₹ 24.38 lakh) would be adjusted against some other project in the future." 49. Now let us consider as to how the Assessing Officer has dealt with the issue relating to grants from Government. Grants from Government As per the notes and accounts (schedule (9), Point No.6) .....

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ipts cannot be treated as revenue receipts and added to income in the absence of government clarification as to the nature of the government assistance. In the absence of any particular government order or clarification or notification with respect to the grants issued, it cannot be considered as the receipt is in the nature of capital grant but to be taxed as it is a revenue receipt thus the entire amount of ₹ 542.20 lakhs will be assessed as income of the assessee for the Assessment Year .....

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2007. 51. Admittedly letter dated 04.12.2008 was not placed before the Assessing Officer. For the assessment year 20052006, assessment order has been passed on 18.12.2007. For the assessment year 2006-2007, assessment order has been passed on 05.12.2008. Reading of the order of the Appellate Authority makes it clear that letter dated 04.12.2008 has been placed before the Appellate Authority and submissions have been advanced. Adverting to the contents of the letter dated 04.12.2008, the Appellat .....

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irty eight thousand only) out of an amount of ₹ 238.00 lakh released to the Commissioner (Tourism), Government of Tamil Nadu for "Erection of Ropeway at Kodaikanal in Tamil Nadu vide sanction No.5 PSW (19/2004) dated 26.03.2004 (copy enclosed). The balance amount of ₹ 213.62 lakh (Rs.238.00 lakhs minus ₹ 24.38 lakhs) would be adjusted against some other project in the future. Therefore appellant argues that since the projects are dropped and grants are to be adjusted to ot .....

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Government of Tamil Nadu. Thus, additions of ₹ 476 lakhs i.e. (Rs.238 x 2) lakhs of the Government of India grants on capital projects has been dropped and ₹ 63.5 lakhs relating to grant of Government of Tamil Nadu converted into equity shares. 52. Insofar as the Assessment year 2006 - 2007, grant received by the assessee was ₹ 256.72 lakhs. The break-up figures are as under: Government of India Rs.188.97 lakhs HADP Grant ₹ 37.75 lakhs Govt. of TN Grant ₹ 30.00 lak .....

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; 150.00 lakhs was for restoration of properties damaged by tsunami. The other two grants were for promoting eco-tourism at Pitchavaram and boat house at Yercaud. The quantum and purpose are specified in the sanction letters of Ministry of Tourism. After perusal of the same, the Commissioner of Appeals (Appellate Authority) has categorically held that the grants received are in the nature of capital grants and thus directed the Assessing Officer to delete the addition. Thereafter the department .....

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is to be seen that grants were given by the Central and State Governments, towards specific capital projects, either for renovation of damaged facilities or for erecting new facilities such as ropeway. The entire grant has been sanctioned by the respective Governments to develop tourism facilities available in State of Tamil Nadu. They are all basically capital outlays. The grants are not made for any revenue expenditure in maintaining such basic facilities. 55. At this juncture, this Court deem .....

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pts are short-term. Whereas, the capital receipts are non-recurring in nature. The benefit derived is for long period. Capital receipts are amounts received in the form of corpus, infused into business. Corpus received from the normal business, for capital investment, is one of capital receipt. The nature of receipt is determined by the character, in the hands of the recipient. 56. The Tribunal has further held that the grants are not given for meeting the day-to-day expenses of the assessee cor .....

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hough on the basis of the said observation, Mr.M.Swaminathan, learned counsel for the Revenue seeks for a remand, is not inclined to order for the reason that clause 12 of letter dated 04.12.2008 of the Ministry of Tourism, Government of India, makes it abundantly clear that the State Government will not keep the amount released by the Central Government unutilised, for more than six months. In case the funds cannot be utilised for such time, the same will have to be surrendered to the Central G .....

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