2012 (10) TMI 1052

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....shan ORDER Per SUSHMA CHOWLA, 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 ....

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

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....none of the expenditure is 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 ....

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....o ground to treat a portion of 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 expendi....