TMI Blog1983 (1) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... d to this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing the expenses of Rs. 23,206 during this year though the assessee incurred the same in the earlier year ? " The fact that expenses incurred in removing overburden in the course of mining can be allowed as revenue expenditure is concluded by the decision of this court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, he disallowed the amount. The assessee preferred an appeal before the AAC. It was contended that the expenses were incurred to find out mica veins and as such these expenses were business expenses. The AAC held that these expenses were development expenses. He also held that these expenses were for prospecting the mine and did not yield any result and there was no business in the next year. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning operations and was revenue expenditure. The Tribunal further held that there was continuous operation and the assessee had written off the amount during the year and, therefore, the Tribunal allowed the expenses. On behalf of the Revenue, our attention was drawn to several decisions including the decision of the Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is necessary in order to arrive at the conclusion, whether it is academic or not, what was the last year's profit and what was the profit in this year. If the last year's profit would have been negligible and if it would have been carried forward, what would have been the actual position in this year. The Tribunal has not given any categorical finding on this aspect of the matter. We are, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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