2015 (9) TMI 230

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....ions of law: (i) Whether the I.T.A.T. erred in law in reversing its own ex parte order passed in the matter based on the identical issue and existing facts and whether such change of opinion is sustainable in law? (ii) Whether the Income Tax Appellate Tribunal was justified in allowing expenditure incurred for project expenditure for those period when the project was not in operation and/or in existence? (iii) Whether the Income Tax Appellate Tribunal was wrong in accepting the plea of deferred Revenue expenditure in the absence of any provisions in the Income Tax Act, 1961 in that regard and/or the said acceptance I.T.A.T. is in violation of section 43B of the I.T. Act as such perverse? So far as the first question is concerned....

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....rehearing the appeal. Let a copy of the Miscellaneous Petition under section 254(2) of the Act filed before the Tribunal, furnished be kept on record. Admittedly Paper Book filed by the appellant does not contain the Miscellaneous Petition filed by the respondent before the Tribunal for recalling the order dated 21st February, 2003 and the order passed thereon. As it appears that the Tribunal had recalled the order dated 21st February, 2003 and had proceeded to hear the appeal afresh after giving notice to the parties and had passed the impugned order, in view of the law laid down in Income Tax Officer vs. Murlidhar Sarda (supra) and in Khaitan Paper & Industries Ltd (supra), the question no.(i) is answered in the negative, against the R....

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.... that in the assessment year 1995-96 this undertaking had a turnover of more than Rs. 99 lakhs, the Tribunal was justified in allowing the deduction. It appears from the order of the Assessing Officer that the assessee had submitted that as the project was not making profit, it was abandoned. The entire expenses were written off during the year. However the Assessing Officer disallowed the expenditure as it was not related to the current year's income. The Assessing Officer, held that the income or loss for a particular year has to be determined after taking into account the expenses incurred to earn the profit and there should direct nexus between the income and the expenses of that particular year. However, in appeal, the CIT (A) found....