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TMI Blog2004 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... be allocated towards cost of the fixed assets including plant and machinery - Third issue raised in this appeal is against the finding of the Tribunal that the Assessing Officer was justified in disallowing Rs. 84,474 out of the Diwali expenses by applying rule 6B of the Income-tax Rules, 1962 - - - - - Dated:- 9-9-2004 - Judge(s) : N. K. SUD., S. S. GREWAL. JUDGMENT The judgment of the court was delivered by N.K. Sud J.- The assessee has filed this appeal under section 260A of the Income-tax Act, 1961, (for short, "the Act"), against the order of the Income-tax Appellate Tribunal, Chandigarh Bench (for short, "the Tribunal"), dated February 27, 2004, relating to the assessment year 1996-97. The assessee has raised three issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e right to use forest land as a consideration for transfer of this land. We also agree with the learned Commissioner of Income-tax (Appeals) that land so transferred to the forest department was a capital asset. Therefore, loss/gain arising on transfer of such land would be a capital loss/gain and not a business loss. The learned Commissioner of Income-tax (Appeals) has already directed the Assessing Officer to examine the claim of the assessee for carry forward of such capital loss, if any. Thus, we do not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals). The same is upheld and this ground of appeal of the assessee is dismissed." Learned counsel for the appellant states that since the land had not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nith Limited for a total consideration of Rs. 14.75 crores as a going concern. The consideration obviously included not only the cost of the fixed assets but also of other benefits like licences, entitlements, permits and quota rights relating to the said paper division. The assessee has not given any bifurcation allocating the cost towards each of the assets taken over by it. It has, however, furnished a report from M/s. S.R. Baltiboi and Consultants (P.) Limited wherein the value of fixed assets has been determined at Rs. 10,18,28,343. Except for this report, there is no other material on record from where the cost of fixed assets could be determined. It is in this background that the Tribunal vide para. No. 32 of its order has rejected t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P) Ltd., determined the value of capital assets at Rs. 10,18,28,343. As per the provisions of section 43(1) of the Income-tax Act, 'actual cost' means the actual cost of the assets paid by the assessee. Since the value of these fixed assets has been determined by M/s. S.R. Baltiboi and Consultants (P) Ltd., at Rs. 10,18,28,343 it is reasonable to believe that the total consideration of Rs. 14.75 crores includes cost of Rs. 10,18,28,343 for acquisition of the capital assets. The assessee has not placed any other paper/documents on record to show that actual value of the capital assets was more than Rs. 10.18 crores. Further, the assessee has not placed any other correspondence exchanged between the two parties to show that the assessee paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by this court. Confronted with this position, counsel for the assessee contended that the balance amount of Rs. 4,56,71,657 (Rs. 14.75 crores - Rs. 10,18,28,343) should have been allowed as revenue expenditure. We are afraid that we cannot entertain this contention because this does not arise out of the order of the Tribunal. Counsel for the appellant has not even referred to the grounds raised by the Tribunal to show that such a plea was raised. The appellant is at liberty to approach the Tribunal to claim such relief, if permissible under the law. The third issue raised in this appeal is against the finding of the Tribunal that the Assessing Officer was justified in disallowing Rs. 84,474 out of the Diwali expenses. The Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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