TMI Blog2012 (12) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... years (AY) 2002-03, 2003-04 and 2004-05. All these are heard together and are being disposed of by way of common order for the sake of convenience. First we take up Revenue s appeal in ITA No.696/Ahd/2006 for A.Y. 02-03. 2. The Revenue has raised the following grounds of appeal:- 1. The Ld. CIT(A) has erred in law and on facts in holding that the assessee has started his business activities and in consequently allowing the claim of business loss of ₹ 8,96,56,43,446/- made by the assessee in its return of income. 3. Briefly stated facts are that assessee is a company wholly owned by the Government of Gujarat (GoG for short) was established for execution of Sardar Sarovar project comprising of a dam across the river Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has decided this issue in favour of assessee. In this view of this matter and respectfully following the decision of Hon ble Special Bench of this Tribunal we do not find any merit in the grounds of Revenue s appeal. Hence, this ground of Revenue s appeal is dismissed. 7. In the result, Revenue s appeal is dismissed. Coming to assessee s CO No.128/Ahd.2006 for A.Y 02-03. 8. The assessee has raised following ground of its CO:- 1. The Learned Commissioner of Income Tax (Appeals) erred in not holding that business was commenced in the earlier years. It is submitted that in the facts and circumstances of the case, the business has already commenced in the earlier years and continued during the year. It is submitted that it be so h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business. 2. The Ld. CIT(A) has erred in law and on facts of the case in directing the AO to treat the income from other sources of ₹ 733,78,358/- as business income and allow expenditure being incidental expenditure pending capitalization in computing income/loss under the head business. 13. We have already discussed this ground of Revenue s appeal in ITA No.696/Ahd/2006 and respectfully following the decision of Hon ble Special Bench of this Tribunal in assessee s own case (supra) and taking a consistent view in terms of decision of Hon ble Special Bench in assessee s own case (supra). Hence, this ground of Revenue s appeal is dismissed. 14. In the result, Revenue s appeal is dismissed. Coming to assessee s CO No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n facts of the case in directing the AO to allow the claim of the assessee under the head incidental expenditure pending capitalization holding that the assessee Corporation was already set up and commenced business. 2. The Ld. CIT(A) has erred in law and on facts of the case in directing the AO to treat the income from other sources of ₹ 3,17,06,703/- as business income and allow expenditure being incidental expenditure pending capitalization in computing income/loss under the head business. 3. The Ld. CIT(A) has erred in law and on facts of the case in directing the AO to quantify the loss and unabsorbed depreciation to be set off and carry forward. 19. We have already discussed this ground of Revenue s appeal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above as Business receipts and not as income from other sources. 5] The ld. C.I.T.(A) in view of an alternative plea ought to have held directed the AO to allow deduction of expenses u/s 57 of the I.T. Act out of Incidental Expenditure Pending Capitalisation which are incurred for earning income held to be taxed under other sources. 6] In event, if it is held that the Appellant has not commenced its business, receipts in form of Tender fees, rent of Nigam s residential building, income on investments/Bank Deposits, other Misc. Receipts and Income on Deposits should be treated as receipts inextricably linked to the project and hence the same ought to have been set-off against project cost. 22. In terms of the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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