2013 (6) TMI 223

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....w of the decision of the Mumbai High Court in Godrej & Boyce Mft. Co. Ltd. [323 ITR 1]? 2. Whether the Appellate Tribunal has substantially erred in holding that compensation paid to property owner is revenue expenditure incurred for business, when it was compensation for non-occupation and a capital loss in nature?" 2. Question 1 arises out of two cross appeals filed by the revenue and assessee before the Tribunal against the order of the Appellate Commissioner. This issue was cumulatively considered by us in Tax Appeal No. 118 of 2013 in which also order has been passed today. We had declined the question making following observations: "2. We may notice that the appellant has also suggested an additional issue in the following ma....

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....nd Rs. 2485 crores) as against which the tax free investments were to the tune of Rs. 589 crore. Thus the interest free funds were far in excess of the investments. CIT(A) has given a finding that the facts in AY 2003-04 are identical to the facts of the case in AY 2002-03 and accordingly he has followed the decision of CIT(A) for AY 2002-03. These facts have not been controverted by the Ld.D.R. nor have they brought on record any facts to the contrary. Hon'ble Bombay High Court in case of CIT v. Reliance Utilities & Power Ltd. (supra) has held that if there are interest free funds available to an assessee sufficient to meet its investments and at the same time the assessee has raised a loan it can be presumed that the investments were from....

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....decision of the Bombay High Court in case of CIT v. Reliance Utilities & Power Ltd. reported in 313 ITR 340. Additionally, we find that the Assessing Officer had, without giving a finding as to how much administrative expenditure have been incurred to earn the exempt income, had made disallowance. In the earlier years also, similar position obtained. That being the fact, no question of law arises. 5. In the result, tax appeal is admitted only for above noted question." 3. Question 2 is with respect to the certain expenditure to the tune of Rs. 6 lacs approximately. The Tribunal observed as under: "47. We have heard the rival contentions and perused the material on record. The factual matrix or the case is that the assessee had cont....