TMI Blog2002 (8) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... d on account of agreement with the State Government regarding restoration of the land in its original shape. - Considering the clause in the agreement, i.e., as far as possible the lessee shall restore the surface land so used to its original condition, the moment the assessee digs pits, he is bound under the agreement to fill those pits and the liability does accrue on the date when the pits are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this appeal is whether the Tribunal was justified in restoring the view taken by the Income-tax Officer regarding disallowance of the expenses accrued on account of agreement with the State Government regarding restoration of the land in its original shape. There was an agreement between the assessee and the State that as far as possible a lessee shall restore the surface land so used to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the view taken by the Assessing Officer. Heard learned counsel for the parties. The submissions made before the Commissioner of Income-tax (Appeals) in writing read as under: "It is submitted that the assessee-company is engaged in open cast mining of soapstone crude. The lease for the exploration of mines has been granted by the Government of Rajasthan. From the terms and conditions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded for as per the clause 2 of Part V of the lease agreement. Thus the cost of refilling of the above is an ascertained liability and is eligible for deduction because the assessee-company observes mercantile system of accounting." It has also been brought to our notice that even in the year 1993-94 though the actual expenditure has been made, but that has been denied on the ground that the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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