2012 (10) TMI 1052

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....LA, J.M. : This appeal by the Revenue is against the order of the Commissioner of Income Tax (Appeals), Chandigarh dated 18.05.2012 relating to assessment year 2009-10 against the order passed u/s 143(3) of Income Tax Act, 1961 (in short 'the Act'). 2. The Revenue has raised the following grounds of appeal: 1. On the facts and circumstances of the case and in law, the learned CIT(A) has erred ....

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....of ₹ 89,11,198/- towards Ladowal Farm against gross receipts of ₹ 14,01,586/-. The Assessing Officer following the addition made in the earlier Assessment Years i.e. 2005-06 and 2006-07, disallowed ₹ 81.90 lacs as capital expenses incurred for the purpose of developing the land, out of total expenditure of ₹ 89.11 lacs. Similar issue of allowability of expenditure, which wa....

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....s of a nature or providing an advantage in the capital field and hence, it cannot be held that the are capital expenditure. 10. The impugned expenditure has been incurred towards furtherance of business objectives. Clearly, the monies recovered by selling the produce raised on the land in question has been accounted for by the appellant in its Revenue account. The mere fact that in the initial ye....

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....f the expense as capital in nature. From the aforesaid, it is evident that the expenses undertaken by the assessee are expenses for carrying out normal faming activities and no adhoc basis can be adopted to segregate the expenditure between capital nature and Revenue. …" 5. The Tribunal in assessee's own case relating to assessment year 2005-06 had allowed expenditure of ₹ 33.74 lacs....