Tribunal allows appeal for deduction under section 37(1)

The Tribunal allowed the assessee's appeal against the disallowance of a claim for deduction under section 37(1) for revenue expenditure. Citing a previous decision with similar facts where the Tribunal ruled in favor of the assessee, the Tribunal found no distinguishing factors and directed the deletion of the disallowed amount. Consequently, the appeal was allowed, and the order of the Ld. CIT(A) was set aside.

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Issues: Disallowance of claim for deduction u/s. 37(1) in respect of revenue expenditure

In this case, the assessee appealed against the order of the Ld. CIT(A)-6, Mumbai regarding the disallowance of a claim for deduction u/s. 37(1) for revenue expenditure incurred during the year amounting to Rs. 4,08,41,533. The assessee's counsel referred to a previous Tribunal decision in a similar case, M/s. Reliance Footprint Ltd, where the Tribunal ruled in favor of the assessee. The Tribunal found that the facts in the current case were identical to the previous case, and the reasoning for disallowance by the AO and the First Appellate Authority were the same in both cases. As no distinguishing decision was presented, the Tribunal followed the previous decision and directed the AO to delete the impugned addition. Consequently, the appeal by the assessee was allowed, and the order of the Ld. CIT(A) was set aside.

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