2015 (4) TMI 504

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.... along with computation of income, audit report etc. for the year under consideration on 30.12.1991, declaring its total income at 'Nil'. The case of the assessee came to be processed and it was issued notices under Sections 143(2) and 142(1) of the Income Tax Act, 1961 (for short, 'the Act'). At the end of the assessment proceedings, the concerned AO made certain additions / disallowances to the income of the assessee. Hence, the assessee approached the learned CIT(A), who partly allowed the appeal filed by the assessee. Being aggrieved and dissatisfied with the same, the Revenue approached the Tribunal by filing an appeal, wherein, the Tribunal passed the impugned order, as referred to in Para-1, herein above. Hence, the present appeal. ....

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....arned Advocate for the assessee-respondent, herein, submitted that the same is covered by a decision of this Court in the case of "CIT VS. ARVIND PRODUCTS LTD.", [2011] 339 ITR 643 (Guj.), wherein, this Court, while answering the similar question framed in that appeal in favour of the assessee, observed and held as under in Paragraph-9; "9. However, factually, the submission that the Tribunal has not recorded any finding on facts is an incorrect statement. The findings recorded in earlier part of paragraph No.9 of the order of Tribunal categorically record that Explanation 2 to Section 43(6) of the Act will not apply in the case of the assessee. This is preceded by narration of facts and reasons as to why the said Explanation is not applic....

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....oubt that the assessee is engaged in the business of manufacture of soap and the soda ash and "lab" so produced is used by way of captive consumption. When such facts viewed in light of the findings of the Commissioner of Income-tax (Appeals) and the Tribunal, we have no reason to interfere with the ultimate conclusion. Had it been a case of entirely a new project undertaken by the assessee as canvassed by the Counsel for the Revenue, a serious question of claim pre-operative expenditure of interest by way of revenue expenditure would arise. However, when the authorities below found that it was an expansion of the existing business, applying the tests laid down by this Court in the case of Alembic Glass Industries Ltd. (supra) in view of th....