TMI Blog2016 (10) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded that in series of decisions, the High Courts and the Hon'ble Supreme Court of India has laid down the principle that if an expenditure is incurred for doing the business in a more convenient and profitable manner and has not resulted in bringing any new asset into existence, then, such expenditure is allowable business expenditure. In the present case, no new business was set up, but towers in addition to which were already set up were proposed at site, which project was later on abandoned. - Income Tax Appeal No. 516 of 2015 - - - Dated:- 30-9-2016 - S. C. Dharmadhikari And B. P. Colabawalla, JJ. Mr. A. R. Malhotra i/b. Ms. Padma Divakar for the appellant Mr. J. D. Mistri - Senior Advocate with Mr. P. C. Tripathi i/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture was in the nature of capital expenditure. 6. Aggrieved by this order/disallowance, an appeal was preferred before the first appellate authority by the assessee. That also came to be dismissed and the Commissioner of Income Tax (Appeals) agreed with the assessing officer. Thereafter, the tribunal was approached and Mr. Malhotra would submit that in reversing the concurrent views, the tribunal committed an error of law, which is apparent on the face of the record. It is the tribunal's finding, which is perverse to say the least. It is the stand of the assessee, which was culled out from a letter addressed by the assessee itself. Once that letter and other record was analysed to arrive at the eventual conclusion, then, the tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer and that of the first appellate authority. Mr. Malhotra has elaborately taken us through these orders to submit that the assessing officer found from the record itself and particularly from a document, namely, a letter or response from the assessee that the purpose of the expenditure cannot be said to be other than bringing up a capital asset into existence. The fact that later on the site was not chosen for hoisting the tower is immaterial. However, we find that the tribunal applied the correct test. The tribunal found that there is no dispute that the expenditure in question was incurred for the purpose of construction of a cellular tower, but the project was then abandoned due to the reason that the site was not suitabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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