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TMI Blog2021 (12) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... ..for the appellant Mr. Subash Agarwal, Adv. ...for the respondent ORDER The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the 'Act' in brevity) is directed against the order dated 15th March, 2017 passed by the Income Tax Appellate Tribunal, "C" Bench, Kolkata (the 'Tribunal' in short) in IT(SS)A No.42/Kol/2015 for the assessment year 2011- 12. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the appellant/revenue and Mr. Subash Agarwal, learned counsel for the respondent/assessee. It is not disputed before us that identical substantial questions of law were considered by this Court in the case of group company of the respondent/assessee in ITAT/133/2015 and by judgment dated 21st June, 2018 the appeal filed by the revenue was dismissed. The operative portion of the judgment re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment made by the assessee in that case fell for consideration of the Supreme Court. The Supreme Court observed that since the assessee was entitled to carry on mining operations and such payment had been made for the removal of the difficulty in the assessee carrying on its business in accordance with its licence, the expenditure had to be regarded as a revenue expenditure and could not be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue, a judgment reported at 86 ITR 647 (R.B.Seth Moolchand Sugachand v CIT) has been cited where a prospecting licence fee was found to be a capital expenditure. However, as is evident from paragraph 11 of the report, the fee was paid for obtaining a prospecting licence and it was such fee that entitled the business to be conducted in the relevant area. The distinction between the judgment in R.B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting mining or prospecting operations prior to obtaining the relevant licence, it was relevant licence which gave the assessee the right in respect of a particular area and that is the distinguishing feature. For the reasons aforesaid, the concurrent findings of the Commissioner (Appeals) and the Appellate Tribunal based on a long-standing judgment of the Supreme Court does not call for any int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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