TMI Blog2019 (3) TMI 1260X X X X Extracts X X X X X X X X Extracts X X X X ..... der. Insofar as the expenses incurred for the Childrens Park, we notice that it is a periodic maintenance for the upkeep of the park and not a capital expenditure. The expenditure is revenue in nature and wholly and exclusively for the purpose of the business and hence there is no error in the assessment order. The Cochin Bench of the Tribunal in the case of Acumen Capital Marketing (I) Ltd. [2017 (6) TMI 61 - ITAT COCHIN] had held that in order to invoke the provisions of section 263 of the I.T.Act, the assessment order has to be erroneous and such order has to be prejudice to the interest of the revenue - we are of the view that land maintenance expenses incurred and debited to the P & L account is clearly being revenue in nature, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome was filed on 27.01.2015 declaring total income of ₹ 1,23,63,820. The assessment was taken up for scrutiny and the assessment order u/s 143(3) of the I.T.Act was completed vide order dated 30.08.2016 accepting the total income returned. Subsequently notice u/s 263 of the I.T.Act dated 26.10.2018 was issued by the Principal Commissioner of Income-tax, Cochin proposing to set aside the assessment order on the ground that the assessment order was erroneous insofar as it is prejudicial to the interest of the revenue for the reason that land maintenance expenditure of ₹ 7,33,636 debited to the profit and loss account was capital expenditure needs to be disallowed. To the notice proposing revision u/s 263 of the I.T.Act, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal in the case of Acumen Capital Marketing (I) Ltd. v. ITO [ITA No.555/Coch/2015 order dated 24th March, 2017] for the contention that the assessment order has to be erroneous and such error has to be prejudicial to the interest of the, for invoking the provisions of section 263 of the I.T.Act. 5. The learned Departmental Representative, on the other hand, strongly supported the order of the CIT. 6. We have heard the rival submissions and perused the material on record. The Assessing Officer, during the course of assessment proceedings, had called the details of various expenses and the assessee had furnished the details of land maintenance expenses vide its letter dated 12.08.2016. Further, the tax audit report did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee being engaged in food and edible items business, has to obtain periodical permission from Kerala State Pollution Control Board with regard to waste management and effluent treatment. The approval granted by the Board for both factories which were valid till 2012 and later renewed till 30.6.2015. Paragraph 5.1 of the approval letter reads as follows: 5.1 Trees and curtain plants shall be planted within and along with boundaries of the industry premises and shall be maintained with due care. Area of vegetative cover shall be enhanced. As regards the expenses at Childrens Park Vytilla ₹ 1,91,991, we notice that the assessee is running a children park in the land owned by it, beside National Highway at Vytilla in w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted only if order of assessing officer is erroneous in so far as it is prejudicial to the interest of the revenue. Thus, if one of the twin conditions namely; (i) the assessment order is erroneous and (ii) prejudicial to the interest of revenue, is not satisfied, the CIT does not have power to exercise his revisionary powers u/s 263 of the Act. In the instant case, as mentioned earlier, on examination of facts, we find there is no error in the assessment order for the CIT to invoke his powers u/s 263 of the Act, hence, we quash the same. It is ordered accordingly. 6.3 In view of the aforesaid reasoning, we are of the view that land maintenance expenses incurred and debited to the P L account is clearly being revenue in nature, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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