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TMI Blog2024 (9) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhavesh Bhatia i/b Lumiere Law Partners PC:- 1. This is an appeal under Section 260A of the Income Tax Act, 1961 ("the Act"). 2. Assessee is engaged in the business of manufacturing of iron and steel products. Assessee had filed the return of income for Assessment Year 2006-2007 on 20th November 2006 declaring total income of Rs. 44,22,82,61,971/-. The return of income was processed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed the contribution made by Assessee to CAF. Aggrieved by the order, an appeal was preferred by Assessee to the Commissioner of Income Tax (Appeals) ("CIT(A)"), who dismissed the appeal by an order dated 29th November 2013. 5. Assessee filed two appeals before the Income Tax Appellate Tribunal ("ITAT"), one impugning the order passed by the CIT on 16th December 2011 under Section 263 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in law, the Hon'ble Tribunal was justified in holding that the CIT-2 was not justified in invoking the provisions of section 263 with regard to issue of allowability of the assessee's contribution to the Compensatory Afforestation Fund (CAF) amounting to Rs. 212.52 crores. 2. Whether in the facts and circumstances of the case and in law, the Hon'ble Tribunal was right in disregar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Assessee". 8. This issue is no more res-integra as even The Bombay High Court (Goa Bench) in the case of The Commissioner of Income Tax v. Dr. Prafulla R. Hede and Another2 has accepted that contribution to CAF will be revenue expenditure and not capital in nature. Even the Special Leave Petition that was filed by the Revenue against Dr. Prafulla R. Hede (supra) has been dismissed on 21st Novem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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