2010 (10) TMI 562

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.... the course of assessment preceding it was interalia observed by the Assessing Officer that the assessee in the computation of income has claimed a deduction of Rs.5,76,42,862/- being expenses incurred during the year which have been capitalised by the assessee in its books of account as capital work in progress. On being asked, it was explained by the assessee that the assessee is in incurring expenses for bidding of various contracts, expenses on site exploration, expenses on travelling of personnel in connection with these activities. The assessee further submitted that since the expenses are incurred in connection with the ongoing business and are revenue in nature, the same are allowable as deduction. The assessee also brought to the n....

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....sessee by the decisions of higher appellate authorities and accordingly he allowed the claim of the assessee.   3. Apart from this the Assessing Officer further observed that the assessee has claimed depreciation of Rs.2,47,99,964/-. The Assessing Officer was of the view that the depreciation claim of the assessee is required to be modified on the basis of finding given in the assessment order for Assessment Year 1993-94 and accordingly he computed the depreciation at Rs.2,47,45,864/- as against claim of the assessee Rs.2,47,99,964/-. The Assessing Officer after making some other disallowance computed the assessee's total income at a loss of Rs.1,26,65,33,302/- and book profit u/s.115JB at Rs. Nil, vide order dated 10.6.2008 passed ....

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....d by the Hon'ble Jurisdictional High Court (supra). The Hon'ble Jurisdictional High Court on question No.(b) has observed and held vide para-2 of its judgment as under:-   "As regards the second question is concerned, the finding recorded by the Tribunal is that the assessee is engaged in the business of operation of rigs for extraction of oil and undertaking other oil related activities. It is further recorded by the Tribunal that in the interest of assessee's business and in continuation of the business carried on by it, the assessee had to explore the chances of development in the field of oil exploration for which it had to submit itself for bidding and tenders. The tribunal has held that submitting tenders and bids in the field....