2013 (10) TMI 1290

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....he relevant assessment years are 2003-04 and 2005-06. These appeals are directed against the common order of the Commissioner of Income-tax (Appeals)-VI at Chennai, dated November 12, 2012 and arise out of the assessment orders passed under section 143(3) read with section 147 of the Income-tax Act, 1961. 2. The common ground raised by the Revenue in both appeals is that the Commissioner of Income-tax (Appeals) has erred in directing the Assessing Officer to treat the expenditure incurred on cost of cables as revenue expenditure, against the finding of the Assessing Officer that the expenditure is capital in nature. 3. The assessee is a company running cable connections. The assessee has incurred huge expenditure in laying cables for ....

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....les are retrievable, they will be of no use. The places where the cables are laid by the assessee are not the properties of the assessee, but they are public properties. The assessees are permitted to lay the cable on the basis of licence issued by the concerned local authorities. The assessees have no control over the land utilised for laying the cables or on the electric poles used for transmitting the cable from place to place. It is to be seen that laying of cable is more labour oriented and even if the assessee wants to retrieve those cables, the labour cost involved would be prohibitive. In the above circumstances, the Commissioner of Income-tax (Appeals) has concluded as under :         &nbs....